Overview
Ireland has several affordable housing schemes designed to help first-time buyers and renters access homes at below-market prices. These are delivered through local authorities, approved housing bodies (AHBs), and the Land Development Agency (LDA).
1. Affordable Purchase Scheme
Local authorities build and sell homes at reduced prices (typically 25 — 30% below market value) to eligible first-time buyers.
Key Features
- Price: At least 25% below open market value
- Eligibility: First-time buyers on moderate incomes
- Income limit: Gross household income less than €85,000 (may vary by scheme)
- Occupation requirement: Must live in the home as your principal residence
- Resale: If you sell within 40 years, the local authority's affordable housing charge applies
2. Cost Rental Scheme
Cost rental is a new form of housing where rents are set at cost-recovery level: meaning you only pay what it costs to build, manage, and maintain the home (no profit margin for a developer).
Key Features
- Rent: Typically 25 — 35% below market rent
- Example rents: €1,200 — €1,600/month for a 2-bed in Dublin (vs €2,000+ market rent)
- Tenure: Long-term tenancies (no fixed term limit)
- Eligibility: Household income less than €66,000 (Dublin) or €59,000 (other areas)
- Not means-tested: No social welfare assessment, but must pass affordability check
3. Local Authority Home Loan
The Local Authority Home Loan is a government-backed mortgage for first-time buyers who cannot get sufficient bank financing.
- Loan amount: Up to €360,000 (depending on county)
- Rate: Fixed 3.15% — 3.85% for the full loan term
- Eligibility: Must have been refused by 2 banks; must meet income limits
- Deposit: Minimum 10%
4. Tenant Purchase Scheme
Existing local authority tenants can buy their social housing home at a discounted price based on the length of their tenancy and income. This is not primarily for first-time buyers but may apply if you are a long-term council tenant.
Eligibility Comparison
| Scheme | Income Limit | Buy or Rent | Discount |
|---|---|---|---|
| Affordable Purchase | Up to €85,000 | Buy | 25–30% |
| Cost Rental | <€66,000 (Dublin) | Rent | 25–35% below market |
| Local Authority Loan | Varies by county | Buy (mortgage) | Low-rate loan |
| Help to Buy | No limit | Buy (tax rebate) | Up to €30,000 |
How to Apply
- Check your local authority's website: affordable housing schemes are run by each local authority (Dublin City, Cork County, etc.)
- Register your interest: many schemes require you to join a waiting list
- Submit an application with proof of income, identity, and first-time buyer status
- Attend an interview (if shortlisted)
- House selection: if approved, you can choose from available affordable homes
2026 Updates
- The Government's Housing for All strategy continues to fund affordable housing delivery
- More cost rental homes are being delivered through the LDA and approved housing bodies
- Income limits for cost rental and affordable purchase have been updated (figures above reflect current limits)
- Affordable purchase schemes now include an equity-sharing element in some local authorities
Pros and Cons
Pros
- Below-market prices and rents
- Secure tenure (especially cost rental)
- Government-backed and regulated
Cons
- Limited supply: waiting lists can be long
- Income limits exclude higher earners
- Resale restrictions on affordable purchase homes
- Not available in all areas
2026 Updates: Bigger Limits, More Supply
Affordable housing support expanded in 2026. The Local Authority Home Loan's property value limits rose from 1 April 2026 (up to €415,000 in Dublin, Kildare and Wicklow; €375,000 in Cork, Galway city and Meath), with the single-applicant income limit up to €80,000. Local authorities and the Land Development Agency are also delivering more Affordable Purchase and Cost Rental homes, especially in Dublin, Cork and the commuter counties.
Demand still far outstrips supply in most areas, so affordable homes are typically allocated through local authority schemes with eligibility checks and, in some cases, ballots or waiting lists. Register early with your local authority and ask to be notified of scheme launches.
How the Schemes Compare in 2026
- Affordable Purchase: buy a home at least 25% below market value; the local authority's affordable housing charge applies if you sell within the clawback period (up to 40 years).
- Cost Rental: rent at cost-recovery level, typically 25–35% below market; long-term tenancies with no fixed end date.
- Local Authority Home Loan: a 90% LTV fixed-rate mortgage for buyers refused by two banks, with limits increased in April 2026.
- First Home Scheme: shared equity on new builds — up to 30% (20% with HTB).
- Ready to Build: discounted local authority sites for self-builders in some areas.
Applying: Practical Steps
- Check your local authority's affordable housing page and income criteria — they vary by scheme and area.
- Have your income and savings documentation ready: payslips, P60, bank statements and a mortgage refusal letter (for LAHL).
- Get mortgage approval in principle so you can move quickly if you are offered a home.
- Ask about the Tenant Purchase Scheme if you are a long-term local authority tenant.