Dáil Éireann Debate, Thursday - 12 February 2026
407. Deputy Ken O'Flynn asked the Minister for Housing, Local Government and Heritage when his Department will provide a directive to local authorities to increase the fresh start mortgage initiative, in line with rising property prices; and if he will make a statement on the matter. [11153/26]
Amharc ar fhreagraThe Local Authority Home Loan (LAHL) is a Government-backed mortgage for creditworthy applicants who cannot get sufficient funding from commercial lenders to purchase or build a home. The loan has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. A Fresh Start principle applies for applications to the Local Authority Home Loan, this means that the following categories of persons who have previously owned a property are eligible to apply for the Local Authority Home Loan:
• Applicant(s) who previously purchased or built a dwelling/dwellings, together with a spouse, a civil partner or a person with whom he or she was in an intimate and committed relationship are eligible under the Fresh Start principle where this relationship has ended, and they have divested themselves of their interest in the previous dwelling/dwellings.
• Applicant(s) that previously purchased or built a residential dwelling/dwellings , but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. However a separate assessment of creditworthiness will be conducted by the underwriters. This applies when the applicant has exited the insolvency/bankruptcy proceedings.
This Fresh Start principle is an eligibility qualification for the Local Authority Home Loan, applicants either meet the criteria set out above and become eligible to apply for the loan or do not meet the criteria, as such there is no limit as such to increase on the Fresh Start principle.
The Programme for Government 2025 and Delivering Homes: Building Communities commit to reviewing house price and income thresholds of the LAHL to ensure that it remains an accessible route to home ownership in the current housing market. This review is now complete. Any changes to the LAHL scheme arising from this review will be announced in due course.
