The Affordable Housing Act 2021 equips Local Authorities in delivering Affordable Housing in response to local needs and market conditions. The Act provides the legislative basis for the Local Authority Affordable Purchase Scheme which sees local authorities make new homes available for purchase by eligible applicants at reduced prices. In return, the local authority takes a percentage equity stake in the Affordable Purchase home equal to the discount of the purchase price from the full market value of the home.
The price to be paid for a new Affordable Purchase home by a particular purchaser, and the percentage equity stake to be taken by the local authority, are calculated by the local authority in accordance with the governing regulations. The price is calculated from an applicant’s maximum mortgage capacity (without any exemption from the Central Bank of Ireland Mortgage Measures), subject to a minimum price set by the local authority for the home.
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme. In order to claim Help to Buy (HTB), an applicant must take out a mortgage on the property with a qualifying lender, with the mortgage being at least 70% of the purchase value of the property or approved valuation in the case of a self-build. Section 477C of the Taxes Consolidation Act 1997 defines “purchase value” of the property. It defines purchase value in relation to the open market value of the home. The HTB scheme is administered by the Department of Finance and Revenue.
My Department has had engagement with the Department of Finance in relation to the above definition and this engagement is on-going.
