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.
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.
These considerations are ongoing but I envisage that the analysis will be concluded shortly to facilitate a final determination on next steps. I am also keen to put in place a more structured and frequent process for the review of these limits going forward.
Any increase to the social housing income limits will be applicable to social housing.
In relation to Cost Rental, the primary condition for accessing Cost Rental housing is a net annual income under a certain limit, which since 1 August 2023 has been €66,000 per year for homes in Dublin and €59,000 elsewhere, set through secondary legislation. Net income is defined as gross income with income tax, USC, PRSI contributions and pension contributions deducted. The Programme for Government includes a commitment to keep the income criteria for cost rental under review, in order to ensure they remain fit for purpose and my Department is progressing this work.
In relation to the Local Authority Affordable Purchase Scheme and the First Home Scheme, there are no specific income thresholds for this scheme. To quality for a Local Authority Home Loan (LAHL) an applicant must have an annual gross income of not more than €80,000 for a single applicant and €85,000 for a joint applicant. The LAHL limits were reviewed recently and these increased limits came into effect earlier this month.
