Incremental Tenant Purchase Scheme for newly built houses

This scheme is for the purchase of new local authority build houses. It does not apply to apartments/flats or existing local authority houses.

The scheme is a purchase option to meet the needs of those requiring long-term housing support. The scheme supports existing low-income tenants and assists prospective local authority tenants to make a start on the route to home ownership.

A separate scheme for the purchase of existing local authority houses came into effect in January 2016, with changes taking effect to that scheme on 01 February 2022.

The Incremental Purchase Scheme applies to new-build houses only.

The houses must be identified for sale by the local authority (i.e. your city or county council).

Rules

If you are in receipt of, or eligible for, social housing support, including those in RAS or leased properties and have a minimum gross annual income of €15,000 - you may apply if and when such houses are advertised for sale by your local authority.

You will pay the market value of the house – less a discount.

Depending on income, the discounts will vary between 40% and 60%.

Your local authority will also place a charge on your house called an ‘incremental purchase charge’.

This charge will be equal to the discount you get on the price of the house. The charge will remain in place for 20, 25 or 30 years (depending on the discount given).

Each year, the local authority will reduce the charge by 2%. The 10% charge for the first 5 years after the sale is released at the end of year 5. At the end of the 20, 25 or 30 years, the charge will be zero as long as you obey the terms and conditions of the scheme.

You must live in the house as your normal place of residence and get agreement from your local authority if you want to sell, let or sub-let the house.

You will be able to resell your house at any time if your local authority agrees.

However, if you sell before the end of the 20, 25 or 30 years, you will have to pay back the value of the outstanding charge on your house to your local authority.

Like all homeowners, you will be responsible for maintaining and carrying out repairs on your house from the date you buy it. You will also have to purchase property insurance on your house – and pay for this yourself.

In order to

be eligible, you must not be in arrears in the payment of rent on a local authority property for more than 12 weeks in the past 3 years, and not be engaged in anti-social behaviour.

The financing of the purchase of the house is a matter for the tenant.

The rules applying to the scheme are set out in the Housing (Incremental Purchase) Regulations 2010 (S.I. No. 252 of 2010).

The relevant local authority will advertise if and when newly built units are available for sale under this scheme. In such instances the necessary application forms will be available from your local authority.

You will need to complete the forms and return them within the required timeframe to your local authority for consideration.

You will be required to provide information including:

• Your PPS number
• Your employment status
• Information regarding your current accommodation
• The employer and place of employment of individual members of your household
• Annual or weekly gross income, as well as annual or weekly deductions from gross income for individual members of your household
• Convictions (if any) in the 5 years prior to application for individual members of your household
• Any other information required by the local authority