Smith: Changes to State-backed Local Authority Home Loan scheme reflects “reality” of housing market 

Fianna Fáil TD for Cavan-Monaghan Brendan Smith has said changes to the Local Authority Home Loan scheme increasing the thresholds for eligibility reflects the “reality” of the housing market.  

Minister for Housing Darragh O’Brien announced plans on Tuesday to increase the house price and income limits of the State-backed loan scheme which is aimed at helping people struggling to secure a mortgage from the banks. 

The house price limit for local authorities, such as Cavan and Monaghan, has been increased to €275,000.

The income limits for applicants have also been increased, with single applicants now eligible for loans up to €70,000 and joint applicants up to €85,000 nationwide. 

The loan, which was launched in January 2022 as part of Housing for All, can be used for new, second-hand, and self-build homes. 

Deputy Smith said: “I am delighted to see the government’s commitment to increasing access to affordable housing through the Local Authority Home Loan program.  

“The changes to the scheme reflect the reality of the housing market and will significantly improve the accessibility for families and individuals in need of affordable housing options.  

“On top of this very positive change, we have a body of work in communicating the value of this scheme to the public. This is one of the very many good schemes which make homeownership more accessible and it’s important we get that information out to the public.  

“These changes have the potential to make a real difference in the lives of those who might not have been able to secure a mortgage otherwise.” 

Deputy Smith added: “I hope these changes will encourage more people to take advantage of this important program, and I look forward to seeing the positive impact it will have on our communities.” 

Since February 2018 over 3,300 people have gotten on the property ladder through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan. 

Housing Minister Darragh O’Brien and Public Expenditure and Reform Minister Pascal Donohoe will sign the amendment regulations in the coming weeks. The changes are set to take effect on 1 March 2023. 


8th February 2023