With housing affordability remaining a significant challenge across Ireland, the Government has invested heavily in schemes to help first-time buyers and eligible households get onto the property ladder. This guide explains the main affordable purchase schemes available through local authorities and how they can help you achieve home ownership.
What is the Local Authority Affordable Purchase Scheme?
The Local Authority Affordable Purchase Scheme (LAAPS) is one of Ireland’s most impactful housing initiatives. Under this scheme, local authorities make newly built homes available at reduced prices for first-time buyers and other eligible purchasers who cannot afford to buy a home at its full market value.
Here’s how it works: the local authority takes a percentage equity share in your home equal to the difference between the market value and the price you pay. For example, if you purchase a home at a 20% discount from its market value, the local authority will hold a 20% equity share in the property.
Key Benefits
- Purchase prices significantly below market value
- Equity discounts typically range from 5% to 25%
- 40 years to buy back the local authority’s share
- Option to repay the equity share at any time
- Can be combined with the Help to Buy Scheme
Who is Eligible for the Scheme?
The scheme is primarily targeted at first-time buyers, but under the Government’s ‘Fresh Start’ principle, applications are also accepted from:
- People who are divorced, separated, or whose relationship has ended
- Those who have undergone personal insolvency or bankruptcy proceedings and no longer have an interest in their former home
Income and Affordability Requirements
To qualify, your maximum mortgage capacity (calculated as 4 times your gross annual household income) must be no more than 85.5% of the full market value of the affordable home. This ensures the scheme targets those who genuinely need assistance.
Deposit and Savings Rules
- Minimum deposit: 10% of the purchase price
- Savings cap: You can have money to cover your deposit plus an additional €30,000. Any savings above this are added to your purchasing power, and if this exceeds 95% of the market value, you won’t qualify
- Minimum equity share: You must need at least a 5% equity stake from the local authority
Recent Affordable Housing Developments
Affordable housing delivery continues to expand across Ireland. Recent highlights include:
County Kildare (November 2025): 66 homes were launched at Barracksfield West in Naas, managed jointly by Kildare County Council and the Land Development Agency. Prices start from:
- €243,477 for one-bed apartments
- €292,933 for two-bed duplexes
- €365,216 for three-bed houses
North County Dublin (September 2025): The LDA, in partnership with Ballymore and Lydon, commenced construction on 1,162 homes including 817 Affordable Purchase, Cost Rental and social homes at Hampton Demesne in Balbriggan and Priory Fields in Skerries.
Budget 2026: Record Investment in Affordable Housing
The Government has announced a record budget of over €11 billion for housing in 2026. Key commitments include:
- €1.2 billion allocated to support 7,500 affordable purchase and cost rental homes
- €250 million available for the Local Authority Home Loan
- €8.75 billion total funding for the Land Development Agency (up from €6.25 billion)
The Land Development Agency (LDA)
The Land Development Agency plays a crucial role in delivering affordable homes across Ireland. The agency is now active on over 40 sites nationwide and is projected to become Ireland’s largest residential developer by 2028.
Key LDA achievements and targets:
- Over 2,000 homes already delivered
- Pipeline of 27,000 additional homes in development
- On course to reach annual output of 2,500+ homes by 2027
- 32 publicly owned sites identified with potential for 15,000 homes in the next seven years
Other Schemes to Consider
First Home Scheme
The First Home Scheme (FHS) is a shared equity scheme where the Government and participating banks pay up to 30% of the cost of your new home in return for a stake in the property. Since its launch in July 2022, over 15,300 people have registered their interest, with 6,700 buyers approved.
Note: The First Home Scheme cannot be used in conjunction with the Local Authority Affordable Purchase Scheme or the Local Authority Home Loan.
Help to Buy Scheme
The Help to Buy Scheme provides a tax refund of up to €30,000 (or 10% of the property value, whichever is lower) for first-time buyers of new-build homes. Key requirements include:
- Property must cost €500,000 or less
- Mortgage must be at least 70% of the property value
- You must live in the property for at least 5 years
- Scheme extended until 31 December 2029
Good news: The Help to Buy Scheme CAN be combined with the Local Authority Affordable Purchase Scheme.
Understanding the Equity Share and Clawback
It’s important to understand how the equity share works over time. The local authority’s share is a percentage of your home’s current market value, not the original price. This means:
- If property values increase, the amount you repay will increase
- If you sell within 20 years, you must pay the local authority their percentage of the sale proceeds (clawback)
- You have 40 years to buy back the equity share, or you can do so at any time
Example: If you bought a property for €380,000 with a 20% local authority equity share (€76,000), and the property is later valued at €400,000, buying back the share would cost 20% of €400,000 = €80,000.
How to Apply
The application process is managed by individual local authorities. Here’s what to do:
- Check availability: Monitor your local authority’s website for new affordable housing developments
- Register interest: Sign up for alerts when new schemes are announced
- Gather documentation: Prepare proof of income, savings statements, and identification
- Submit application: Apply through the relevant local authority portal when a scheme opens
- Await assessment: The local authority will verify your eligibility
Priority Allocation
If there are more applications than homes available, at least 70% of units must be prioritised based on:
- How suitable the property is for your household size
- When your eligible application was received
The remaining 30% may be allocated based on additional criteria set by each local authority, such as prioritising applicants living in their area.
Conclusion
Ireland’s affordable purchase schemes represent a genuine pathway to home ownership for those who might otherwise be priced out of the market. With record Government investment, expanding LDA projects, and multiple schemes that can be combined, there has never been a better time to explore your options.
Whether you’re a first-time buyer or qualify under the ‘Fresh Start’ principle, these schemes can provide the support you need to make home ownership a reality. Contact your local authority today to find out about upcoming affordable housing developments in your area.
This article is for informational purposes only and was accurate at the time of publication (January 2026). Eligibility criteria and scheme details may change. Always check with your local authority or official Government sources for the most up-to-date information.