Tenant Purchase Scheme

The Incremental Tenant Purchase Scheme for existing local authority houses came into operation from the 1st January 2016. This is a scheme for the purchase of existing local authority houses. If you are a local authority tenant living in a local authority house that is available for sale under the scheme and you meet the eligibility criteria, you can apply to purchase your house.

A local authority tenant living in a local authority house included in the scheme can apply to buy the house. The applicant must satisfy certain requirements, including being in receipt of some form of social housing support for at least ten years, and having a gross annual income of €11,000.

The applicant will pay the market value of the house – less a discount. The discounts will depend on an applicant's gross annual income and vary between 40% and 60%.

The local authority will place a charge on the house called an ‘incremental purchase charge’. This charge will be equal to the discount received 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%. At the end of the 20, 25 or 30 years, the charge will be zero as long as the applicant complies with the terms and conditions of the scheme.

The applicant must live in their house as their normal place of residence and get agreement from the local authority if they want to sell, let or sub-let the house.  If the house is sold before the end of the 20, 25 or 30 years, the applicant will have to pay back the value of the outstanding charge on the house to the local authority.  

The applicant will be responsible for maintaining and carrying out repairs on the house from the date they buy it. They will also have to get and keep adequate property insurance on the house.

The local authority can refuse to sell the house in particular circumstances such as to tenants or household members involved in anti-social behaviour or with rent arrears.

The Housing (Sale of Local Authority Houses) Regulations 2015 (as amended) sets out the conditions for tenant purchase of local authority dwellings.

The following types of properties are not included in the Tenant Purchase Scheme: 

• apartments, flats, maisonettes and duplexes
• houses specially designed for older people
• houses provided for people with disabilities to help them leave institutional care and live in the community
• Traveller specific houses
• caravans, mobile homes or other homes that can be moved
• houses in a private development transferred to the local authority by the developer, including Part V tenancies
• houses reserved by the local authority for particular reasons

Update January 2024:

Updated regulations were issued in January 2024 : Specifically, there were updates in relation to 3 sections of the regulations;

- Minimum income requirements: The minimum income required for an applicant to be eligible to apply under the scheme has been revised downward from €12,500p.a. to €11,000 per annum.

- Time receiving social housing supports: The period of time tenants will be required to be in receipt of social housing support to be considered eligible under the scheme remains at 10 years. However, in the case of joint tenancies only one tenant is now required to have been in receipt of social housing supports for 10 years.

- Primary and secondary income sources: Primary, Secondary and income disregards have been amended.

Further information and application form below:

Tenant-handbook-2024.pdf (size 3.2 MB)

Tenant-Purchase-Application-Form-2024.pdf (size 266.8 KB)