Affordability and the chance to own a home is at the heart of Government’s housing policy, as embodied within the new housing plan, Delivering Homes, Building Communities 2025 – 2030. The plan reinforces and expands the range of existing measures being implemented by Government to tackle the issues of supply and affordability, thereby supporting the increased provision of new homes to purchase and rent.
Government is investing an unprecedented level of funding to support housing supply, which will underpin, inter alia, the new Starter Homes Programme, delivering an average of 15,000 affordable housing supports annually to 2030.
In addition to a keen focus on tackling vacancy and dereliction, the plan provides for an expanded remit for the Land Development Agency, work to further extend the First Home and Help to Buy Schemes to 2030, an increase in affordable tenancies and an expanded local authority delivered starter homes for purchase programme.
With a strong focus on deliverability, the Plan will enable housing delivery partners to accelerate the supply of new starter home supports, providing thousands of individuals and families with increased access to secure and affordable housing solutions nationwide.
Information and guidance on the affordable housing supports in place for First Time Buyers, fresh starters and other eligible applicants is available at the following link: www.gov.ie/en/campaigns/0d279-doors-open/, and includes information on the schemes below.
• Local Authority Affordable Purchase Scheme
Local authorities make newly built homes available at a reduced price for first-time and other eligible buyers who cannot afford to purchase these homes at open market value with a maximum mortgage and 10% deposit. The local authority takes a percentage equity share in the home equal to the difference between the open market value of the home and the reduced price paid. This means that if a home is purchased at a 20% reduction on the open market value, the local authority will have a 20% equity share in the home. For more information visit: www.affordablehomes.ie
• First Home Scheme
The First Home Scheme provides finance to help first time buyers, self-builders or those making a fresh start to bridge the gap between a deposit and mortgage, and the price of a new home. This Scheme takes a percentage ownership of your home, which you can buy back later. For more information on the scheme visit: www.firsthomescheme.ie
• Local Authority Home Loan
The Local Authority Home Loan is a Government-backed mortgage for first-time buyers and certain other eligible applicants who have been refused a mortgage through a regular mortgage lender. The scheme is for the purchase of new or second-hand residential properties and for self-builds. It also includes the purchase of homes through Affordable Housing Schemes, with the exception of the First Home Scheme. The Local Authority Home Loan is available nationwide from all local authorities. More information on the Local Authority Home Loan is available at the following link: localauthorityhomeloan.ie/
• Local Authority Purchase and Renovation Loan
The Local Authority Purchase and Renovation Loan is a Government backed mortgage and loan for the purchase and renovation of derelict and non-habitable homes. The property must be eligible for the Vacant Property Refurbishment Grant, whether derelict, non-habitable or simply vacant. For more information visit: purchaseandrenovationloan.ie/
• Vacant Property Refurbishment Grant
The Vacant Property Refurbishment Grant is available for turning a vacant house or building into a permanent home or a rental property. A grant of up to €50,000 is available. If the refurbishment costs exceed the standard grant of up to €50,000, a top-up grant amount of up to €20,000 is available. For more information: www.gov.ie/en/service/f8f1b-vacant-property-refurbishment-grant/
• Help to Buy
The Help to Buy scheme can help with a deposit for a new or self-build home. It is a refund on income and DIRT tax paid in Ireland in the last four-years. The scheme comes under the remit of Revenue and the Department of Finance. Information on Help to Buy is available at the following link:
www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
A number of the above schemes can be combined, thereby providing additional affordability support.