Jackie Cahill (Tipperary, Fianna Fail)
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212. To ask the Minister for Housing, Planning, and Local Government if the demonstrated ability of a person to afford their rent payments will be taken into consideration when they are applying for a local authority home loan; and if this would offset a lower level of savings given that this is in part due to their high cost of rent; and if he will make a statement on the matter. [25814/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Local Authority Home Loan is a Government backed mortgage for those on modest or low incomes 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 for new and second-hand properties, or to self-build.

To support prudential lending, applicants must have a deposit equivalent to at least 10% of the purchase price of the property. Of this deposit, cash savings should provide no less than 3% of the purchase price of the property and applicants must provide bank or similar statements for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings. Gifts can comprise the remaining 7% of the purchase price of the property where their source is verified. I have no plans to change the deposit or savings requirements for the scheme.

The availability of the Help to Buy scheme for first-time buyers offers additional assistance to purchasers using the Local Authority Home Loan to buy newly built properties. This should alleviate some of the challenges faced by first-time buyers in accessing the 10% deposit of the purchase price of the property.