SUMMARY
Grant / Support Name: Home Purchase Assistance for Social Housing Tenants /
Incremental Tenant Purchase Scheme
Provider: Irish Government / Local Authority
Value: 40% to 60% discount on the purchase price
Overview: The Incremental Tenant Purchase Scheme is designed to help tenants to purchase the local authority home they live in at a discount of between 40% and 60%. Recent changes to the eligibility criteria will make it easier for some older tenants to buy their homes if they have the financial means to do so as well as helping low-income tenants enter the housing market.
Eligibility: As of 2024, tenants with an annual income of €11,000 will now be eligible to apply. In the case of joint applicants, at least one has to have been receiving social housing support for ten years.
Special Conditions: The amount of discount you receive on your home (ranging from 40% to 60% off the purchase price, depending on your income), becomes what is called a ‘charge’ on the property.
This charge reduces by 2% each year and is completely cleared after an agreed number of years.
If you sell the house or break the terms of the during this period, you will be required to repay the remaining charge to the local authority.
Homes not included in this scheme are:
- apartments - a separate purchase scheme for apartments applies
- houses that have been specifically designed for occupation by elderly persons
- houses that have been specifically designed in a group setting for occupation by members of the Travelling community
- caravans, mobile homes or structures capable of being moved by whatever means
- houses in a private development transferred to the local authority by the developer (otherwise known as Part V properties, as they were transferred to the local authority under Part V of the Planning and Development Act 2000)
Tax Implications: There are no tax implications with this scheme
ARTICLE
If you are renting a local authority house and it is listed for sale under the Incremental Tenant Purchase Scheme you can apply to buy it if you meet the eligibility criteria. To qualify, you must have a minimum annual income of €11,000 and have received social housing support for at least 10 years. In joint applications, only one tenant needs to meet the 10-year support requirement, as determined by the local authority according to the rules of the scheme.
You'll receive a discount which ranges from 40% to 60% on the market value of the house, depending on your income.
For income assessment, local authorities consider earnings from employment and private pensions. Certain social protection payments like contributory and non-contributory State pensions are also included because they're considered long-term. Other social protection payments are not included because they're typically short-term compared to the scheme's property purchase term.
Your local authority will impose what is called an 'incremental purchase charge' on your house. This charge remains in place for 20, 25, or 30 years, depending on the discount provided. Each year, the authority reduces the charge by 2%. If you comply with the scheme's terms, the charge will be zero at the end of the designated period.
You must live in the house as your primary residence and obtain approval from your local authority if you wish to sell, lease, or sublet the property. Once you have bought it, you are responsible for its maintenance, repairs, and property insurance costs.
You have the option to sell your house with your local authority's consent at any time. However, if you sell before the end of the 20, 25, or 30 years, you must repay the outstanding charge to the local authority.
In certain circumstances, the local authority may refuse to sell the house, such as when tenants or household members are involved in anti-social behaviour or have rent arrears.
HOW TO APPLY
You must apply to your relevant local authority.
It is up to you how you raise the finance to buy the property. If you qualify for a local authority Home Loan, you will need to apply for this separately.
