For many first-time buyers in Ireland, owning a home feels more like a dream than a realistic goal. As property prices rise faster than incomes, and deposits become harder to save, the demand for affordable housing continues to grow. That is where the Affordable Purchase Scheme steps in.
This government-backed programme, officially known as the Local Authority Affordable Purchase Scheme Ireland, is designed to make new homes more accessible to eligible buyers. It allows first-time buyers to purchase newly built homes at a reduced price, with local authorities covering the difference through a shared equity arrangement.
If you have been searching for an affordable housing scheme for first-time buyers, this guide will help you understand how the scheme works, who qualifies, and how to apply for affordable housing in Ireland.
What Is the Affordable Purchase Scheme?
The Affordable Purchase Scheme is a key initiative under the Housing for All strategy. It enables eligible first-time buyers to buy newly built homes from their local authority at a discounted price. In exchange, the local authority takes a percentage equity stake in the home.
This discount helps bridge the gap between what you can afford and the actual cost of the property. It is not a loan in the traditional sense. Instead, it is a shared equity model that supports buyers without adding immediate financial pressure.
The aim is simple: make homeownership possible for more people, particularly those who are priced out of the open market but earn too much to qualify for social housing.
How the Affordable Purchase Scheme Works
Under the Local Authority Affordable Purchase Scheme Ireland, the local authority provides a discount on the market price of a newly built home in an approved development. Here is how it typically works:
1. Property Selection
Homes available under the scheme are built by or in partnership with local authorities. These homes are then advertised through the relevant local authority’s website or housing portal.
2. Discount Provided
Buyers receive a discount of up to 30 percent of the market value of the property. This percentage becomes the equity stake held by the local authority.
3. Equity Share Agreement
In return for the discount, the local authority retains an equity share in your property. This must be repaid if you sell the home, remortgage it, or decide to buy out the local authority’s stake at a later date.
4. No Interest or Monthly Payments
There are no monthly repayments or interest charges on the equity share. However, repayment is expected when specific conditions are met, such as a sale or transfer.
This structure makes the scheme different from traditional loans, offering buyers a chance to access a secure, long-term home without additional financial burden early on.
Who Can Apply for the Affordable Purchase Scheme?
Eligibility is focused on individuals and families who meet certain financial and personal criteria. You may qualify if you:
- Are a first-time buyer, or meet Fresh Start criteria (e.g., after a relationship breakdown or insolvency)
- Have a gross annual household income below €66,000 (Dublin) or €59,000 (other areas)
- Intend to live in the home as your main residence
- Do not own or have a legal interest in any other residential property
- Can secure a mortgage of at least 70 percent of the purchase price
- Can cover at least 10 percent of the purchase price as a deposit (which may include Help to Buy support)
Local authorities may have additional criteria, such as income limits, residency requirements, or family size considerations. Always check with your local authority for the latest details.
Where Are Affordable Homes Available?
The Affordable Purchase Scheme is gradually rolling out across Ireland. Local authorities such as Dublin City Council, Fingal County Council, South Dublin County Council, Cork City Council, and others are offering homes under the scheme in new developments.
The number of properties and locations will continue to grow as part of the government’s ongoing investment in affordable housing.
To find available properties, visit your local authority’s website or follow updates on new housing developments in your area.
How to Apply for Affordable Housing in Ireland
If you meet the eligibility criteria and have identified a property offered under the scheme, here’s how to apply for affordable housing in Ireland through the Local Authority Affordable Purchase Scheme:
Step 1: Watch for Announcements
Monitor your local authority’s website and social media for updates on upcoming developments and open applications.
Step 2: Gather Documentation
You will typically need the following:
- Proof of income (e.g., payslips, P60s)
- Mortgage approval in principle
- Proof of deposit
- Photo identification
- Proof of residency or housing need (if required)
Step 3: Complete the Application Form
Each local authority provides its own application form. Make sure to fill this out fully and accurately. Applications are usually accepted online or by post.
Step 4: Wait for Assessment
The local authority will assess applications based on income, household need, and scheme-specific criteria. Successful applicants will be invited to proceed with a property reservation.
Step 5: Enter an Equity Agreement
If your application is approved, you will sign an equity agreement with the local authority. This agreement outlines the terms of the equity share and your obligations.
Step 6: Finalise Your Mortgage and Purchase
With the discount applied and mortgage secured, you can move forward with the property purchase. Your solicitor will handle the legal aspects of the equity and title transfer.
What Are the Benefits of the Affordable Purchase Scheme?
This affordable housing scheme for first-time buyers offers a range of advantages:
- Lower entry cost: Makes it easier to afford a home in today’s market
- No monthly repayments on equity: Keeps early-stage costs low
- Government-backed: Offers greater transparency and security
- Homeownership now, equity repayment later: Gives buyers time to grow financially
- Encourages local housing supply: Supports community development and reduces long-term rental pressure
Things to Consider Before Applying
Before entering into the Affordable Purchase Scheme, it is important to understand a few key points:
- You will not fully own the property until the equity is repaid
- The repayment amount will be based on the market value at the time of repayment, not the original discount
- You may need to repay the equity share if you remortgage or sell the property
- Legal advice is recommended before signing any equity agreement
- Your ability to refinance in the future may be affected by the equity arrangement
Make sure you carefully review all the terms and seek professional advice if needed.
Is the Affordable Purchase Scheme Right for You?
If you are a first-time buyer earning a moderate income and struggling with affordability, the Affordable Purchase Scheme could be your path to homeownership. It provides a well-structured, transparent way to secure a new-build home with government support.
While there are responsibilities tied to shared equity, the benefits can outweigh the drawbacks for those looking to settle in a secure, long-term home.
Take the First Step Towards Homeownership
At FindQo.ie, we help first-time buyers explore available homes, connect with local estate agents, and access government housing schemes like the Local Authority Affordable Purchase Scheme Ireland. Whether you’re just beginning your journey or ready to apply, we provide the tools and guidance you need.
Visit FindQo.ie today to learn more about affordable housing options and start your path to owning your home.
