The income limit for the shared ownership and affordable housing schemes was increased with effect from 1 January 2006. Persons whose income in the previous tax year satisfies the income test of €40,000 or under for a single income household or €100,000 or under for a two income household, using the formula 2½ the main income plus once the secondary income are eligible for the schemes.
The qualifying household income limits and the amounts of the rent/mortgage subsidy, which were also increased with effect from 1 January 2006, are set out below:
Household Income per annum €
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13,000 and under
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13,001 to 15,500
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15,501 to 18,000
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18,001 to 20,500
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20,501 to 23,000
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23,001 to 25,500
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25,501 to 28,000
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Entry at over 28,000
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New Tapering
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28,001 to 29,000
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A household entering the affordable housing or shared ownership schemes at an income of over €28,000 does not qualify for any subsidy.
Under the Shared Ownership Scheme a minimum deposit of €1,270 is required, while 3% of the purchase price is required under the 1999 Affordable Housing Scheme.
The minimum percentage share that can be purchased under the Shared Ownership Scheme is 40%. The maximum loan that may be advanced by a local authority in respect of the share of the dwelling being purchased is €185,000. The application of the maximum loan and minimum share criteria could facilitate the purchase of a house costing €462,500. Accordingly, certain local authorities impose a maximum house price limit for shared ownership transactions in their areas where they deem it necessary.
The loan, income, subsidy and deposit thresholds are kept under review to ensure they are meeting the needs of prospective clients and any changes will be announced in due course.