On 14 November 2023, I brought a proposal to Cabinet to broaden the Local Authority Home Loan, namely to make finance available to purchase and/or renovate derelict or non-habitable properties for the first time, which was agreed. This is evidence of the Government’s continued focus on bringing vacant and derelict homes back into use, which is a major objective of Housing for All.
Applicants purchasing properties that qualify for the Vacant Property Refurbishment Grant (VPRG) may also be able to avail of financing under the Local Authority Home Loan to purchase and/or renovate their non-habitable property and bring it back into use. Regulations are currently being prepared to give effect to this decision. My Department, working closely with local authorities and other stakeholders are presently finalising the the extension of the Local Authority Home Loan with the intention it will be ready for qualifying VPRG applicants in Q2 of this year.
It is important to note that while the scheme rules will endeavour to provide flexibility for Local Authorities, who make the final determination on loan applications, the Local Authority Home Loan is a significant financial obligation for both the the local authority issuing the loan and the borrower taking out the loan. Therefore, in the interests of prudent lending it is vital that careful assessments of the borrower's ability to repay and the viability of the renovation project are conducted. Therefore, not all applicants will be successful in obtaining the Local Authority Home Loan, for example due to the cost or complexity of the project, which is normal for mortgage applications of this type.
