The baseline income thresholds increased by €5,000 for all local authorities with effect from 1 January 2023. The thresholds thus increased to €40,000, €35,000 and €30,000 for Bands 1, 2 and 3 respectively. These thresholds are net income thresholds, i.e. gross household income less income tax, PRSI, Universal Social Charge and Additional Superannuation Contribution. Income is defined and assessed according to a standard Household Means Policy. The Policy provides for a range of income disregards and local authorities also have discretion to disregard income that is once-off, temporary or short-term in nature and which is outside the regular pattern of a person’s annual income.
My Department has been examining the existing income limits in the context of current market and household income conditions, including the suitability or otherwise of the current framework having regard to the significantly changed landscape since the standardised income limits were introduced. This includes examining the findings of research commissioned by my Department and this work is ongoing.
I am not in a position at this point to indicate the outcome of these considerations but I envisage that the analysis will be concluded early in 2026 to facilitate a final determination on next steps.
Cost Rental housing is a key tool in the Government's efforts to make rents more affordable and renting more secure. It is a new form of tenure in Ireland, established in 2021, where the tenant pays a rent which is set to cover the cost of delivering, managing, and maintaining the home. Cost Rental is targeted at people within the middle-income cohort, who do not qualify for social housing but who may be facing acute affordability pressures on the private rental market.
Eligibility for tenancies in Cost Rental homes is primarily determined by the net household income (less income tax, PRSI, USC, and pension contributions) of applicants, which is assessed at the point of application. In August 2023 the Government increased the net household income limits to €66,000 for Cost Rental homes in Dublin and €59,000 elsewhere. These limits were introduced across the Cost Rental sector from 1 August 2023 by the Affordable Housing Act 2021 (Cost Rental Eligibility) Regulations 2023.
In line with the commitment in the new Programme for Government, my Department is keeping the parameters for Cost Rental income eligibility limits under review, in order to ensure that the scheme effectively targets these homes at the intended tenant cohort.
In relation to affordability supports, eligibility criteria vary from scheme to scheme with many not subject to any minimum income limits. Much of the supports of this Department are primarily aimed at supporting affordability constrained households, first-time buyers and certain other eligible applicants.
A list of affordability supports is set out below. To note, a number of these supports can be combined thereby increasing the level of support available.
Local Authority Affordable Purchase Scheme
For affordable homes purchased under the Local Authority Affordable Purchase Scheme (LAAPS), purchasers pay a price for their new home in accordance with their purchasing power, calculated as outlined in Affordable Housing Regulations of 2023. Homes made available under LAAPS will have a minimum sales price. There are no specific income thresholds for this scheme.
First Home Scheme
The First Home Scheme is also a shared equity scheme and makes home ownership achievable by bridging the gap for first-time buyers and other eligible homebuyers between their deposit and mortgage, and the price of their new home within regional price ceiling which are available at [www.firsthomescheme.ie/about-the-scheme/property-price-ceilings/]. There are no specific income thresholds for this scheme.
Local Authority Home Loan
The Local Authority Home Loan (LAHL) is a Government-backed mortgage for first-time buyers and certain other eligible applicants who have been refused a mortgage or have received an insufficient loan offer through a regular mortgage lender. To qualify for LAHL an applicant must have an annual gross income of not more than €70,000 for a single applicant and €85,000 for a joint applicant.
