I am a tenant of a local authority house owned by the local County Council. I have lived in my home for 15 years and I would now like to buy it. Can I buy my home from the Council and will I have to pay full market value?
The Tenant Purchase Scheme in Ireland enables eligible local authority tenants to purchase their rented homes at discounted prices. This initiative aims to promote homeownership among social housing tenants.
You may be eligible if:
You have been living in a local authority home for at least 10 years.
Your home is designated for sale under the scheme (not all houses are).
Your gross annual income is at least €12,500.
You are not in rent arrears or involved in antisocial behaviour.
You do not already own a property.
The discount on the market value of the property is determined by the tenant’s income, ranging from 40% to 60%. For instance:
Income of €20,000 or less: 60% discount
Income between €20,001 and €29,999: 50% discount
Income of €30,000 or more: 40% discount
An ‘incremental purchase charge’; is applied, corresponding to the discount received. This charge diminishes by 2% annually over a period of 20, 25, or 30 years, depending on the discount. For example, a 40% discount results in a 20-year charge period, while a 60% discount corresponds to 30 years.
Purchasers are required to use the property as their primary residence and must obtain local authority consent for any sale, letting, or sub-letting during the charge period.
Selling the property before the charge period concludes necessitates repaying the outstanding charge value to the local authority. Post-purchase, homeowners are responsible for all maintenance and repairs, as well as securing adequate property insurance.
Certain properties are excluded from the scheme, including:
Apartments (covered under a separate Tenant Purchase of Apartments Scheme);
Dwellings specifically reserved for particular groups, such as older individuals or people with disabilities;
Properties in areas with high housing demand, where retaining social housing
stock is deemed necessary.
Byrne Carolan Cunningham LLP Solicitors are available for consultations in any of our offices in Athlone, Galway, Dublin, Lanesborough or Moate. If you need advice about a local authority house purchase our team of Property Solicitors are highly experienced and can guide you through the process.