Tuesday, June 7, 2022

Affordable Housing

Housing for All

Affordability and homeownership are at the heart of Housing for All, the Government’s national housing plan to 2030. It recognises that significant new supports are needed so that those who want to own their own home can do so, and those that see renting as a more suitable housing option are able to do so at an

affordable rate and with more security.

Affordable housing is being provided in two ways:

Housing for All aims to deliver 36,000 affordable purchase homes and 18,000 cost rental homes up to 2030.

Affordable schemes and supports

Local Authority Affordable Purchase Scheme

The Local Authority Affordable Purchase Scheme makes local authority-provided homes available at a reduced price for first-time buyers, and Fresh Start applicants, whose combined mortgage and deposit will not cover the market price of the newly built home. Eligible applicants can apply to purchase a local authority delivered Affordable Purchase dwelling through their Local Authority.

First Home Scheme

The forthcoming First Home Scheme aims to support eligible first-time buyers and Fresh Start applicants by bridging the gap between their deposit and mortgage, and the private market price of the new home (subject to regional price ceilings).

The current schedule anticipates a launch of the First Home scheme website in the middle of June, with a full scheme deployment and acceptance of applications from the end of June.

Local Authority Home Loan Scheme

The Local Authority Home Loan is a government-backed mortgage for first-time buyers and Fresh Start applicants. It is available nationwide from all local authorities for those on modest incomes who cannot get sufficient funding from regulated financial providers to purchase or build a home. Eligible first-time buyers and Fresh Start applicants can apply for a Local Authority Home Loan to purchase a new or second-hand property, or to build their own home.

A ‘Fresh Start’ principle applies to the Local Authority Home Loan Scheme. This means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings and no longer have an interest in the family home, are eligible to apply under this Scheme.

Cost Rental

Cost rental is a new form of long-term, sustainable home rental. Cost Rental is targeted at middle-income households with incomes above the social housing limits, but who are struggling to meet private market rent levels.

Under the Cost Rental model, rents for homes are set to cover only the cost of financing, building, managing and maintaining the homes and are therefore based on the cost of the provision of homes, rather than being subject to market driven movement. State subventions can be used in order to reduce the initial capital cost and make the starting rent more affordable. Cost Rental provides tenants with sustainable, long-term rental accommodation.

Land Development Agency

The Land Development Agency (LDA) is an important delivery partner in scaling up the supply of affordable housing for purchase or rent. It will deliver a significant number of homes on State lands, and in association with Local Authorities in major mixed-tenure developments.

The LDA will also enable the provision of affordable homes on non-state lands through Project Tosaigh, which was launched in November 2021. Project Tosaigh is a market engagement initiative aimed at accelerating delivery of housing on sites with full planning permission that are not currently being developed by private sector owners due to financing and other constraints. The project will deliver up to 5,000 affordable homes for purchase or rent by the end of 2026.

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