How to qualify for an affordable home

Benefits, drawbacks and the cost of applying.

YOUR STATUS

You must be a first-time buyer

You must be in need of housing

Your income: for affordable housing built on council-owned land under the 1999 Act, annual pre-tax income must not exceed €36,800 for single applicants. Two-income households are based on 2.5 times the larger income plus the smaller income. There are no income limits for Part V homes in private developments (properties given by developers to local authorities to allocate). Most councils operate a points system, with length of time living or working in the area, first-time buyer status and housing requirement taken into account.

It is unlikely that someone on a high income will be made an offer of affordable housing in the near future. However, banks are proposing to facilitate borrowers earning up to €50,000 per annum for affordable housing. Where construction costs are high, middle-income first-time buyers may qualify in coming years. With Fingal County Council, the combined income cannot exceed €92,000.

Your ability to meet mortgage repayments. Payslips, evidence of outstanding loans and savings record required.

No record of anti-social behaviour

BONUS POINTS

For living and/or working in the locality

If you are a council tenant or on waiting list for social housing

The length of time you have been on the affordable housing list

Extent of your housing need. Families are preferred for houses and large apartments, couples and single applicants for smaller apartments

COST OF APPLYING

Application fees vary from nothing to €50 depending on the local authority area, with Part V privately-developed schemes incurring the highest application fee. Councils with a restricted land bank such as Dublin City Council ask applicants to nominate their area of choice. South Dublin County Council charges a €50 fee across the board for both types of affordable schemes. Fingal County Council charges one fee of €38.

THE BENEFITS

Mortgage finance arranged by local authorities

Buyers get the same house or apartment as a buyer who pays the full price, give or take a few fittings

The opportunity to live in a location of choice

Subsidy for low-income applicants in some cases

THE DRAWBACKS

Long wait in sought-after areas like Dublin city centre and Dún Laoghaire-Rathdown

Disappointment where houses drawn by lottery when your name doesn't come out of the hat

Resentment from new neighbours who paid the full amount

Anyone selling an affordable home within 20 years from the date of purchase is liable to a clawback payment, equal to the difference of the value of the property at the time of sale and the price actually paid. This is charged on a percentage basis depending on length of ownership

HOW TO APPLY

Download an application form from the relevant local authority website, telephone and ask for forms to be posted out or collect in person. Proof of income is required. You may have to specify a particular area