Dáil Éireann Debate, Thursday - 28 September 2023
193. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the ceiling for income which he has set for the following respective housing supports: a local authority home loan, a social tenancy and a cost rental tenancy; if he has plans to review these thresholds; and if he will make a statement on the matter. [41981/23]
View answer194. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the current ceiling for the purchase of a home using a local authority home loan and if he has plans to review this ceiling. [41982/23]
View answerI propose to take Questions Nos. 193 and 194 together.
The 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.
With a Local Authority Home Loan you can borrow up to 90% of the market value of a residential property. As of 1 March 2023, the maximum market values of the property that can be purchased or self-built are:
• €360,000 in Dublin, Kildare, and Wicklow, or
• €330,000 in Cork, Galway, Louth and Meath, or
• €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford, or
• €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary.
The market value of the property can be above these limits if the property is available through the Local Authority Affordable Purchase Scheme. In such cases it is the purchase price of the property, which takes into account the local authority's stake in the home, which must be below the relevant price limit.
The income limits for the Local Authority Home Loan, which are based on gross income, were also increased from 1 March 2023. Previously, single applicants seeking to purchase homes in Cork, Dublin, Galway, Kildare Louth, Meath and Wicklow could not earn in excess of €65,000 and must have earned less than €50,000 if seeking to purchase in the remaining counties. For joint applicants, the income limit was €75,000. From 1 March 2023, single applicants must not have earned greater than €70,000 annual gross income in the previous tax year, while joint applicants must not have earned greater than €85,000 combined gross income in the previous tax year.
Given the recent increases, there are no plans at present to change the income or house price limits, however, they are kept under review.
Further information on the Local Authority Home Loan scheme is available on the dedicated website localauthorityhomeloan.ie/
With regards to income eligibility for social housing, which is based on net income, the Social Housing Assessment Regulations 2011, as amended, prescribe maximum net income limits for each local authority, in different bands according to the area concerned, with income being defined and assessed according to a standard Household Means Policy.
The baseline social housing income thresholds were increased by €5,000 with effect from 1 January 2023. The thresholds, for single applicants, increased to €40,000, €35,000 and €30,000 for bands 1, 2 and 3 respectively, in net income terms. Details on the local authorities in each income band are available at the following link: www.gov.ie/pdf/?file=https://assets.gov.ie/236056/59ecede4-f862-4c5d-bf5a-e1a1d4ff9a63.pdf#page=null
An initial scoping and data gathering exercise for the preparation of potential options for a revised Social Housing income eligibility model has commenced. This work is ongoing. Once completed, detailed analysis and review will be required in advance of finalising options for myself and Government.
As regards cost rental income ceilings, which are also based on net income, the Government recently increased the net income thresholds for Cost Rental eligibility, effective from 1 August 2023, to replace the former national income threshold of €53,000. Prospective Cost Rental tenants must have a total net annual household income not exceeding €66,000 in the four Dublin local authority areas and not exceeding €59,000 in the rest of Ireland, as per the Cost Rental Eligibility Regulations 2023: www.irishstatutebook.ie/eli/2023/si/374/made/en/pdf
