The ‘Local Authority Affordable Purchase Scheme’ sees local authorities make new homes available for purchase by eligible applicants at reduced prices. In return, the local authority takes a percentage equity stake in the Affordable Purchase home equal to the discount of the purchase price from the full market value of the home. If an eligible applicant purchases a home at a 20% discount, for example, the local authority takes a 20% equity interest in the home.
The price to be paid for a new Affordable Purchase home by a particular purchaser, and the percentage equity stake to be taken by the local authority, are calculated by the local authority in accordance with government regulations. The price is calculated from an applicant’s maximum mortgage capacity (without any exemption from the Central Bank of Ireland Mortgage Measures), subject to a minimum price set by the local authority for the home.
The Scheme is primarily targeted at first-time buyers. Under the government’s ‘Fresh Start’ principle, applications will also be accepted from:
People who are married or in a civil partnership, or who are in an intimate and committed relationship and intend to reside in the home with their partner must apply jointly.
Local authorities are responsible for assessing applications and verifying that people are eligible purchasers (in accordance with government regulations). To be eligible, an applicant’s maximum mortgage capacity (without any exemption from the Central Bank of Ireland Mortgage Measures) must be no more than 85.5% of the full market value of the Affordable Home. The cash savings an applicant might have are also taken into account by the local authority in making its assessment.
The application process is managed by the respective local authorities that make the Affordable Purchase homes available for purchase. As homes become available, they will be advertised in line with government regulations and applications will be processed by the respective local authorities in line with the set eligibility criteria. More specific details will be given in each advertisement.
Where the number of applications exceeds the number of Affordable Purchase homes made available for purchase, successful applicants will be chosen in accordance with the appropriate ‘Scheme of Priority’ communicated by the respective local authorities (in line with government regulations).