For many first-time buyers in Ireland, the dream of owning a home can seem out of reach. With rising property prices and mortgage limits, even well-prepared buyers are finding it hard to secure a suitable home within their budget. Thankfully, the Affordable Purchase Scheme is designed to close that gap and help more people get on the property ladder.
This government-backed initiative provides financial support to eligible buyers by reducing the upfront cost of newly built homes. In return, the local authority retains a percentage share in the property. It is a practical and sustainable approach to affordable housing, offering an alternative to long-term renting.
In this guide, we’ll explore how the Affordable Purchase Scheme Ireland works, who qualifies, and how you can apply.
What Is the Affordable Purchase Scheme?
The Affordable Purchase Scheme is part of the government’s wider Housing for All strategy. It is a government housing scheme for first-time buyers who cannot afford to purchase a home on the open market but do not qualify for social housing.
Under the scheme, participating local authorities offer newly built homes at reduced prices. The difference between the market value and the discounted price is covered by the local authority in exchange for a percentage equity share in the home.
This shared equity model allows you to buy a home at a more affordable price, with no interest or monthly payments required on the equity portion.
How the Affordable Purchase Scheme Works
The Affordable Purchase Scheme operates through a straightforward shared equity structure:
1. Discounted Purchase Price
When you buy a home through the scheme, the local authority offers a discount of up to 30 percent off the market value. You pay the remainder through a mortgage and your own deposit.
2. Local Authority Equity Stake
In exchange for the discount, the local authority holds an equity share in your home equal to the percentage discount given. For example, if you receive a 25 percent discount, the authority owns a 25 percent stake.
3. No Repayments for Equity
There are no monthly repayments or interest on this equity share. Repayment is only due when you choose to buy out the equity, sell the home, remortgage, or after a specified period.
4. Full Ownership Still Possible
You are free to buy back the equity from the local authority at any time, either in full or in stages. When you repay, the amount is calculated based on the current market value of your home.
This approach allows first-time buyers to access modern homes with reduced financial pressure, while maintaining the option to fully own the property in the future.
Who Is Eligible for the Affordable Purchase Scheme?
To benefit from the Local Authority Affordable Purchase Scheme, you must meet several criteria. These are designed to ensure that the scheme targets those most in need of support:
- You must be a first-time buyer, or qualify under the Fresh Start principle (e.g. following separation or personal insolvency)
- You must not currently own or have a legal interest in any residential property in or outside Ireland
- Your annual gross household income must not exceed €66,000 in Dublin or €59,000 in other areas
- You must be able to secure a mortgage of at least 70 percent of the home’s purchase price
- You must have a deposit of at least 10 percent (including any Help to Buy contribution)
- You must intend to live in the property as your main residence
Each local authority may have additional conditions or preferences, such as prioritising buyers already living in the area or families with children.
Where Can You Access the Affordable Purchase Scheme?
The scheme is currently being rolled out by local authorities across Ireland. While availability can vary by region, more councils are joining the programme as new developments are completed.
Counties currently offering homes through the scheme include:
- Dublin City and South Dublin
- Fingal and Dún Laoghaire–Rathdown
- Cork City and County
- Limerick and Galway
- Meath, Kildare and Wicklow
To find out what’s available in your area, check your local authority’s website or housing section. New properties are often listed with price details, expected completion dates, and eligibility criteria.
How to Apply for the Affordable Purchase Scheme in Ireland
Applying for the Affordable Purchase Scheme Ireland involves a few simple steps:
Step 1: Watch for Open Applications
Keep an eye on your local authority’s announcements regarding available homes under the scheme. These are usually posted online and shared through council newsletters or local press.
Step 2: Check Eligibility
Before applying, make sure you meet all income, deposit, mortgage, and residency requirements. Some authorities require a housing need assessment before proceeding.
Step 3: Submit Your Application
Each council provides its own application form and list of supporting documents. Typically, you will need:
- Mortgage approval in principle
- Proof of income (payslips, P60, etc.)
- Proof of deposit
- Photo identification
- Confirmation of first-time buyer status
Applications are usually submitted online, but postal options may also be available.
Step 4: Assessment and Offer
Your application will be assessed, and successful applicants will be contacted and invited to reserve a property. Once you accept the offer, you’ll begin the legal and financial steps to complete the purchase.
Step 5: Legal Agreement
You’ll sign a shared equity agreement with the local authority outlining your obligations and the conditions under which equity must be repaid.
What Are the Advantages of the Affordable Purchase Scheme?
The Affordable Purchase Scheme offers several key benefits:
- Lower upfront cost makes buying a home more accessible
- No monthly repayments or interest on the equity portion
- Security of tenure in your own home
- Option to fully own the property in the future
- Support for new-build homes, contributing to sustainable development
This government housing scheme for first-time buyers creates an affordable path to homeownership without placing additional financial strain on those who are already stretching their budgets.
Important Considerations Before Applying
While the scheme is highly beneficial, it’s important to understand your responsibilities:
- The local authority will retain a legal interest in your home until the equity is repaid
- You may have to repay the equity share if you remortgage or sell the home
- The repayment value is based on current market value, not the original discount
- Legal and valuation fees may apply when repurchasing equity
It’s recommended to speak with a mortgage advisor or solicitor before signing the shared equity agreement, so you fully understand the implications for your long-term finances.
Final Thoughts on Affordable Housing in Ireland
For first-time buyers who fall between the cracks of the open market and social housing, the Affordable Purchase Scheme Ireland is a meaningful solution. It reduces the cost of buying a new home, provides long-term housing security, and opens the door to full ownership without immediate financial strain.
If you’re struggling with affordability, this scheme could be the step you need to move forward. With more developments being launched and local authorities actively participating, now is the perfect time to explore your options.
Start Your Homeownership Journey Today
At FindQo.ie, we help first-time buyers in Ireland connect with trusted estate agents and discover newly built homes that qualify for government housing schemes. Whether you’re just starting out or ready to buy, our platform makes the process easier, smarter, and more accessible.
Visit FindQo.ie now to explore homes available under the Affordable Purchase Scheme and take the first step toward owning your own home.