Dáil Éireann Debate, Tuesday - 27 June 2023
391. Deputy Seán Canney asked the Minister for Housing, Local Government and Heritage if he will consider increasing the income threshold for people applying for the local authority home loan to take into account the increase in wages and to include people who are second-chance applicants; and if he will make a statement on the matter. [31106/23]
View answerThe Local Authority Home Loan is a Government-backed mortgage for those who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.
Supporting home ownership is a key objective for this Government and as part of achieving this I recently announced significant changes to the house price and income limits, with effect from 1 March 2023, which apply in the Local Authority Home Loan, which will result in more people being eligible to apply.
Increased income limits for all applicants in each local authority area are:
• €70,000 annual gross income for all single applicants nationwide
• €85,000 annual combined gross income for all joint applicants nationwide.
A 'Fresh Start' principle applies to the Local Authority Home Loans scheme for certain categories of persons who previously owned a home. In recognition of such circumstances, people who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the previous family home are eligible to apply under this scheme. It also applies to people who have been divested of a home through personal insolvency/bankruptcy proceedings and who may also be eligible to apply for the Local Authority Home Loans Scheme. The same income limits apply for Fresh Start applicants.
I will continue to keep the Local Authority Home Loan under review to ensure it remains a relevant support for people who want to own their own home.
