Dáil Éireann Debate, Tuesday - 18 November 2025
569. Deputy Niamh Smyth asked the Minister for Housing; Local Government and Heritage if he will review the case of a person (details supplied); if he will examine their situation regarding the local authority home loan; and if he will make a statement on the matter. [63046/25]
View answerThe Local Authority Home Loan is a Government-backed mortgage for creditworthy applicant who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. Applicants for the Local Authority Home Loan must be of good credit standing and have a satisfactory credit record.
To be eligible for a Local Authority Home Loan, an applicant must be in continuous employment for a minimum of two years as a single applicant. Employment can be PAYE and/or self-employment. Continuous employment does not need to be permanent, but continuous in nature. This means that an applicant may be in the same employment or in more than one employment over a two-year period, however the break from employment cannot have been more than four weeks.
Under the Local Authority Home Loan scheme social welfare payments are not generally considered as part of repayment capacity. However, certain long-term State benefit payments may be considered as repayment income only where the main income source is of an earned nature (i.e., more than 50% of the income that forms the full Home Loan application is from a source other than State benefits payments).
Long-term State benefit payments considered will be:
* State Pension (Contributory and Non-contributory);
* Widow’s/Widower’s Pension;
* Blind Pension;
* Invalidity Pension.
The long-term nature of the payment must be confirmed by the Department of Social Protection or other relevant Government Department. The One-Parent Family Payment is not taken into account as income for repayment capacity for local authority lending.
To support prudential lending, applicants must have a deposit equivalent to at least 10% of the market value of the property. Of this deposit, cash savings should provide no less than 3% of the market value of the property and applicants must provide bank or similar statements for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings. Gifts can comprise the remaining 7% of the market value of the property where their source is verified.
Section 63(3) of the Local Government Act 2001 provides that, subject to law, a local authority is independent in the performance of its functions. Section 6 of the Housing (Miscellaneous Provisions) Act 2009 specifically provides that the Minister's power to issue policy directions and guidelines to housing authorities in relation to their housing functions should not be construed as enabling the Minister to exercise any power or control in relation to any individual case with which a housing authority is or may be concerned. I am, therefore, precluded from intervening in relation to individual cases.
