Michael Healy-Rae (Kerry, Independent)
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374. To ask the Minister for Housing, Planning, and Local Government if social welfare money can be taken into account when a tenant wishes to secure a local authority loan to purchase their property (details supplied); and if he will make a statement on the matter. [36176/24]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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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.

As part of clarifications issued in March 2023, eligibility for the Local Authority Home Loan is based on gross annual income being under the relevant income thresholds. Gross annual income is the income reported for the payment of tax. As disability allowance is not taxable, it is also not considered as part of repayment capacity. Furthermore, under the Local Authority Home Loan scheme social welfare payments are not generally considered as part of repayment capacity. However, certain long-term State benefit payments may be considered as repayment income only where the main income source is of an earned nature (i.e. more than 50% of the income that forms the full Home Loan application is from a source other than State benefits payments).

Long-term State benefit payments considered will be:

• State Pension (Contributory and Non-contributory);
• Widow’s/Widower’s Pension;
• Blind Pension;
• Invalidity Pension;