Dáil Éireann Debate, Thursday - 22 September 2022
248. Deputy Michael Healy-Rae asked the Minister for Housing, Local Government and Heritage the price guidelines that his Department has issued for the prices of affordable homes in each local authority; if his attention has been drawn to the fact that houses that are fully compliant with current regulations are available at these prices in each location; and if he will make a statement on the matter. [46416/22]
View answerAffordable homes made available through the Local Authority Affordable Purchase Scheme are covered by the Affordable Housing Act 2021 and associated Regulations. Delivery of these homes is primarily a matter for each Local Authority, though the Department supports delivery through grants from the Affordable Housing Fund (AHF). The Department does not set price ceilings for homes the AHF will support. However, Local Authorities are required to demonstrate that the funding provided will allow the delivery of the homes at purchase prices below market value and that the homes are suitable for the moderate income, first-time buyer households which are the target market.
Under the legislation, the purchase price of a home made available by a Local Authority varies according to the property and the purchasing power of an eligible applicant, though will be between 5% and a maximum 40% below the market value of the home. However, this is subject to a minimum sale price set by the Local Authority having regard to the various costs associated with delivery and the level of financial subsidy available, including grant funding from the AHF. This is set out in the Affordable Housing (No. 2) Regulations 2021 (available online at www.irishstatutebook.ie/eli/2022/si/183/made/en/print).
Separately, the First Home Scheme, launched on 7 July 2022, supports first-time buyers in purchasing new houses and apartments in the private market through the use of an equity share model. It uses regional price ceilings aligned to the median prices paid for new-build homes by first time buyers in each area. This is to temper any inflationary pressures and to target support at the lower part of the price distribution in each area, as well as to encourage additional housing supply at this price level. Full details of the First Home Scheme, including the price ceilings broken down by Local Authority area, are available on the scheme website: www.firsthomescheme.ie.
