Dáil Éireann Debate, Thursday - 23 November 2023
232. Deputy Pearse Doherty asked the Minister for Housing, Local Government and Heritage when the fresh start loan scheme will be available for renovations; and if he will make a statement on the matter. [51699/23]
View answerI understand the Question refers to the extension of the Local Authority Home Loan to derelict and non-habitable properties.
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.A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan. The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle:
• Applicant(s) who previously purchased or built a dwelling, together with a spouse, a civil partner or a person with whom he or she was in an intimate and committed relationship are eligible under the Fresh Start principle where this relationship has ended, and they have divested themselves of their interest in the previous property.
• Applicant(s) that previously purchased or built a residential property, but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. However a separate assessment of creditworthiness will be conducted by the underwriters. This applies when the applicant has exited the insolvency/bankruptcy proceedings
On 14 November 2023, the Government agreed to broaden the Local Authority Home Loan to financing the purchase and/or renovation of derelict or non-habitable properties, providing a means for eligible individuals and families to finance viable renovation projects on their own initiative. For clarity, the extension applies to all eligible applicants, not just Fresh Start applicants.
My Department, working closely with local authorities and other stakeholders, will now develop the details of the extension of the Local Authority Home Loan in advance of its expected implementation in Q2 2024.
