Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 894 and 895 together.

Local Authority Home Loan

The Local Authority Home Loan is a Government-backed mortgage for creditworthy applicants 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.

With a Local Authority Home Loan you can borrow up to 90% of the market value of a residential property. The maximum market values of the property that can be purchased or self-built are:

• €360,000 in Dublin, Kildare, and Wicklow, or
• €330,000 in Cork, Galway, Louth and Meath, or
• €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford, or
• €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary.

Single applicants must not be earning greater than €70,000 annual gross income in the previous tax years, while joint applicants must not be earning greater than €85,000 annual combined gross income in the previous tax year.

While there are no plans at present to change the income or house price limits, it will be kept under review.

First Home Scheme

The First Home Scheme Designated Activity Company (DAC) is fully responsible for the operation of the First Home Scheme on behalf of all shareholders, including price ceiling reviews. At its launch, the First Home Scheme Designated Activity Company (DAC) announced it would review all price ceilings at 6-month intervals.

At the end of June 2024, the First Home DAC published the outcome of the fourth of its scheduled 6-monthly review of the price ceilings that apply to qualifying homes and subsequently revised price ceilings in relation to 14 local authority areas.

The revised price ceilings came into effect 1 July 2024. More information on price-ceiling reviews is available at the following link: www.firsthomescheme.ie/about-the-scheme/property-price-ceilings/

Cost Rental Scheme

Income limits for cost rental homes were revised in 2023 to provide for higher net income limits and also to provide for differentiation between Dublin and other areas. The current net income limits for cost rental are €66,000 for Dublin and €59,000 for all other parts of the country.

Social Housing

Applications for social housing support are assessed by the relevant local authority, in accordance with the eligibility and need criteria set down in section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the associated Social Housing Assessment Regulations 2011, as amended.The regulations prescribe maximum net income limits for each local authority, in different bands according to the area concerned, with income being defined and assessed according to a standard Household Means Policy.

Housing for All includes a commitment to review income eligibility for social housing. From this review, completed in November 2021, it was recommended moving five local authorities from Band 3 to Band 2, ensuring the income eligibility thresholds better reflect housing costs in those counties. Government also agreed to increase the baseline income thresholds by €5,000 for all local authorities with effect from 1 January 2023. The thresholds thus increased to €40,000, €35,000 and €30,000 for bands 1, 2 and 3 respectively.

The review further recommended the commissioning of research to develop options for a revised or new social housing income eligibility model. My Department recently received this detailed research, commissioned by the Housing Agency. The scope of the research included examining the existing income limits in the context of current market and population conditions and the suitability or otherwise of the current framework having regard to the significantly changed landscape since the standardised income limits were introduced.

My Department will now undertake a detailed examination of the report, in order to develop a new social housing income eligibility model by Q4 2024 in line with the Housing for All Action Plan update. This detailed examination will include consultation with stakeholders and will look at, inter alia, how the social housing income limits system interacts with other housing supports and ensure that they continue to target households correctly.