I am a tenant of a local authority house. 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.
To qualify, tenants must have been receiving social housing support for a minimum of ten years and have a gross annual income of at least €11,000.
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.