Irish Government Expands Local Authority Home Loan Scheme to Tackle Housing Crisis

Dublin: In a significant move aimed at easing Ireland’s housing crisis, the Government has announced expanded eligibility and revised thresholds under the Local Authority Home Loan and the Local Authority Purchase and Renovation Loan schemes.

Confirming the development, Housing Minister James Browne stated that the revised property price caps and increased income limits for mortgage applicants will come into effect in the second quarter of 2026.

Support for First-Time Buyers

The two loan schemes are designed primarily to support first-time buyers and new applicants who are unable to secure sufficient finance from commercial lenders. In addition to assisting with home purchases, the schemes also enable applicants to acquire vacant or derelict properties for renovation. Eligible buyers may also benefit from the Vacant Property Refurbishment Grant.

Since February 2018, more than 4,300 individuals have purchased homes through the Local Authority Home Loan and the Rebuilding Ireland Home Loan schemes, the Minister noted.

Revised Property Price Caps

Under the updated framework, maximum eligible property values under Local Authority-administered schemes have been increased as follows:

In areas including Dún Laoghaire–Rathdown, South Dublin County Council, Dublin City Council, Fingal County Council, Kildare and Wicklow, the cap rises from €360,000 to €415,000.

In Galway City, Cork City, Meath and Cork County, the limit increases from €330,000 to €375,000.

In Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford, the cap increases from €300,000 to €345,000.

In Galway County and Louth, the limit rises from €330,000 to €345,000.

In Carlow, Cavan, Donegal, Kerry, Laois (Portlaoise), Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary, the maximum eligible property value increases from €275,000 to €310,000.

Increased Income Thresholds

The Government has also raised income eligibility limits. For single applicants across all local authority areas, the income threshold increases from €70,000 to €80,000. Individuals earning below €80,000 may apply independently under the council schemes without the need for a joint application.

The income cap for joint applicants will remain unchanged at €85,000.

Interest Rates

The Local Authority Home Loan continues to offer competitive fixed-rate options:

• 4% fixed interest for up to 25 years (APR 4.07%)

• 4.05% fixed interest for up to 30 years (APR 4.13%)

The expanded measures represent a further step by the Government to enhance affordability and accessibility in the housing market, particularly for first-time buyers navigating rising property prices and tighter lending conditions.