£90,000 houses in affordable schemes at Swords and Malahide are valued at over £135,000

Garda∅, civil and public servants and nurses make up a large percentage of the 300 people on Fingal County Council's affordable housing list, according to their director of services, Alan Carthy.

The waiting list is expected to grow when Fingal advertises the details of new schemes over the next two years.

The affordable housing scheme is still in its infancy. Although launched in March 1999, Fingal is so far the only one of Dublin's four local authorities to provide housing to eligible purchasers at cost price.

While the Shared Ownership Scheme has been available for some years, the affordable housing scheme is in the pipeline stages in most local authority areas.

The pioneer developments in Fingal are Jugback Lane in Swords and Seamount in Malahide.

Both are built on council land and comprise social (local authority rented accommodation) and affordable housing.

The raison d'etre of the affordable housing scheme is to provide housing in areas where property prices have created an affordability gap for lower income house purchasers. Those deemed eligible can buy at a substantial discount from the market price.

Jugback Lane is a mix of 50 social and 21 affordable houses. They were sold for under £90,000 (114,300) and have an estimated market value of around £135,000 (171,450). Seamount in Malahide has 54 houses of which 14 are affordable and were sold for over £90,000 (114,300) with a market value of £160,000 to £170,000 (203,200).

A vast 700-home development under construction by Shannon Homes in Buzzardstown in Mulhuddart will have social, affordable and private housing sold at full market price. There are further schemes under construction in Blanchardstown, Donabate and Balbriggan.

A future spur to low-cost housing will be Part V of the Planning Act 2000, which allows local authorities to reserve up to 20 per cent of private housing developments for social and affordable housing. Fingal County Council expects to provide over 200 affordable homes under Part V by the end of next year.

Fingal is the only one with a waiting list but the other local authorities are compiling mailing lists by taking details of those who call enquiring about the scheme.

Getting your name on the list as quickly as possible is important, says Alan Carthy. "The advice is, if you want to be top of the list in 18 months time then get in now."

In the last tax year, those eligible should have earned no more than £25,000 (31,750) if in a single income household. In a two income household, the income threshold is £62,500 (79,735), which is worked out on the basis of two and a half times the principal earner plus once the income of the subsidiary earner.

The house is purchased outright, by way of a mortgage of up to 95 per cent of the sale price provided by the local authority. Subsidies are available to reduce the mortgage payments of purchasers with a gross household income of up to £20,000 (25,400) in the preceding year.

Mortgage protection insurance is arranged by the local authority at a rate of 0.67 per cent of the amount outstanding on the loan.

The subsidy ranges between £1,000 to £2,000 (1,270 to 2,540), depending on income. The £3,000 (3,810) new house grant is available to first time buyers and can be used to fund part of the 5 per cent deposit.

Loans are provided by the local authority over a 25-year term, currently at the variable rate of 6.17 per cent or a fixed rate of 7.17 per cent for a period of five years from the issue of the loan.

Dublin Corporation give examples of typical outgoings for a household with single gross income in excess of £20,000 monthly (25,400). Including mortgage protection insurance on a 95 per cent loan, at 6.17 per cent variable to purchase, a house for £80,000 (101,600) would amount to monthly payments of £523.79 (664,210)

To protect against speculators selling the affordable house and pocketing the proceeds, there is a clawback if it is sold within 20 years. This clawback equals the difference between the purchase price and the market price at the time of selling. Carthy dismisses suggestions that there is potential for animosity towards the affordable house owners by neighbours who have purchased at full market price.

"The houses may not necessarily be the same," says Carthy, "the affordable ones might be slightly smaller or of a different design. And if you buy privately you have the option to sell whenever you want and profit if the market escalates." He does not envisage widespread abuse of the scheme. "Most of the people who want to buy a house under this scheme genuinely need a place to live. We don't anticipate many problems but we are not naive, abuses will happen ."

The reason why Fingal is ahead of the rest is partly to do with availability of land but also, says Carthy, the fact that it has a pro-active council. "We got out and did it and the council members supported the scheme all the way. You always get local opposition to an integrated estate, but the councillors put their necks on the line politically to endorse it."

In the case of the Shared-Ownership Scheme, the same income levels apply but you can choose the house you want up to a maximum purchase price of £150,000 (190,500), although up to £200,000 (254,000) may be allowed, depending on the size of the deposit. The house can be new or second-hand but must meet certain standards. If granted a shared ownership lease, one has to buy at least 40 per cent of the value of the house (the price paid by the local authority to acquire it) and rent the remaining 60 per cent or less from the local authority. The minimum deposit accepted is £1,000 (1,027).

As well as mortgage repayments, rent is payable on the local authority's share of the property, less any subsidy entitlements. The rent is calculated at 4.5 per cent of the cost of the rented share and adjusted each year for inflation.

In some cases the £1,000 (1,027) deposit can be waived if the purchaser is surrendering a local authority house or if they have been approved for local authority housing.