How much is an ‘affordable home’ in your county under the new housing plan?

Housing for All sets out price ceilings for the shared-equity First House scheme

Housing for All, the plan launched by the Government on Thursday, promises 54,000 affordable homes by 2030. Photograph: iStock

Housing for All, the plan launched by the Government on Thursday, promises 54,000 affordable homes by 2030. Photograph: iStock

 

Housing for All, the plan launched by the Government on Thursday, promises 54,000 affordable homes by 2030 – 36,000 for purchase and 18,000 cost-rental units.

These are the schemes that will be used for affordable purchase:

The shared-equity First Home scheme:

Under this scheme, the State and banks will jointly support first-time buyers on moderate incomes to buy a new home on the private market. Up to 20 per cent equity support will be available to purchase these homes – or a maximum of 30 per cent if the Help to Buy is not utilised.

Applications for the new scheme are likely to be open from early January 2022. There will be caps based on the value of properties that participants in the scheme can buy. These ceilings will be based on open market prices.

The intended price caps are:
– €225,000 in counties Cavan, Donegal, Leitrim, Longford, Mayo, Monaghan, Sligo and Tipperary;
– €250,000 in counties Kerry, Kilkenny, Laois, Roscommon, Waterford City and County;
– €275,000 in counties Carlow, Louth and Offaly;
– €300,000 in counties Clare, Westmeath and Wexford
– €350,000 in Cork County, Galway County, Kildare, Meath, Limerick City and County
– €400,000 in Fingal, Wicklow, Galway City, Cork City, South Dublin
– €450,000 in Dublin City Council and Dun Laoghaire
– An additional, higher cap of €500,000 for apartments in Dublin City Council’s area and Dun Laoghaire are to be considered.

Local Authority-led Affordable Purchase Scheme:

Theses homes are to be available at a reduced price with the Local Authority taking an equity stake equivalent to the reduction from the prevailing market price for the property.

The purchaser can redeem or “buy out” this equity stake at a time of their choosing, but there will be no requirement to do so. The prices will depend on the type, size and location of the homes. However, local authorities have indicated they will aim to make homes available at average purchase prices of approximately €250,000. A new fund to support Local Authority and Approved Housing Body delivery of affordable housing is to be established this year.

A reformed Local Authority Loan Scheme:

There will be changes to the Local Authority Home Loan Scheme.

The interest rate for new borrowers will be lowered by 0.25 per cent and the maximum income ceiling for single persons will be raised to €65,000 in areas where the house-price limit under the scheme is €320,000. These are in the Greater Dublin region, Cork and Galway. The maximum income for joint applicants is €75,000.