Chapter 2 of 10 · Schemes and grants · 1 of 14
Affordable purchase homes: buying from the council or the Land Development Agency
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Council and Land Development Agency affordable homes: how the equity share works, income rules, where homes are offered and how to register.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Affordable purchase is a way to buy a new home below its market value. The seller is your council, or the Land Development Agency. The council keeps a share of the home equal to the discount. You buy that share back later.
This guide explains how the share works, the income rules, where the homes are offered and how to register. It describes the routes, not particular developments. The First Home Scheme calculator shows how a shared equity purchase changes the price you can reach.
A worked example first
Grace is a first-time buyer. Her council advertises a new two-bed house with a market value of €350,000. The council offers it to her at €270,000. The difference is €80,000.
| Item | Amount | Share of market value |
|---|---|---|
| Market value | €350,000 | 100% |
| Price Grace pays | €270,000 | 77% |
| Council's share | €80,000 | 23% |
Grace pays €270,000 with a mortgage and her deposit. The council keeps a 23% share of the home. She can buy the share back at any time at the home's value at that time. If she sells, the council takes 23% of the sale price.
What the scheme is
The affordable purchase scheme is set up under the Affordable Housing Act 2021. There are two sellers:
- Your local authority, which builds or buys new homes and sells them at a price below their value.
- The Land Development Agency, called the LDA, a State body that builds homes on public land and sells some of them the same way.
Both use the same idea. The buyer pays what they can afford. The seller keeps an equity share equal to the discount. Equity is the part of a home you own outright. The share is the part you do not own yet.
How the equity share works
The share is worked out from the gap between the market value and the price you can afford. Your price is your biggest mortgage plus your deposit. The council's share fills the rest, within limits the council sets.
The share is a percentage, not a fixed sum. If the home goes up in value, the share goes up with it. If the home goes down, so does the share.
You buy out the share at the value of the home at the time. You can do it in parts or all at once. The council may set a minimum for each part. There is no deadline in general, but the council can require redemption in some situations, such as a sale or a long period after purchase. Check the terms the council gives you.
The income rules
The test is about what you can afford, not an income limit alone. The council looks at:
- Your biggest mortgage under the Central Bank's rules: 4 times gross income for a first-time buyer. Gross income is pay before tax.
- Your deposit.
- The price of the home.
If your mortgage plus your deposit can reach the full market value, you do not need the scheme and do not qualify. If it cannot, the council's share fills the gap, within the council's own limits.
Each council sets rules for each scheme. They can include a maximum income, a household size for each home type, and a local connection. Read the rules for the scheme you apply to.
Who qualifies
- First-time buyers.
- Fresh Start applicants: people who are separated or divorced, or who have been through insolvency, and have no interest in a home now.
- People who can get a mortgage, from a bank or from the council's own Local Authority Home Loan.
- People who will live in the home as their main home.
A deposit of 10% of the price you pay is needed. Help to Buy can count towards it on a new build, subject to Revenue's rules. The Help to Buy guide sets them out.
Where homes are offered
Homes are offered scheme by scheme, as councils and the LDA finish developments. There is no single waiting list. The routes are:
- Your council's website, where each affordable purchase scheme is advertised with its own window to apply.
- affordablehomes.ie, the Housing Agency's site, which lists schemes across the country.
- The LDA's own site, which advertises its affordable purchase homes.
Sign up for alerts on your council's site and on affordablehomes.ie. Windows can be short, and a complete application on the day it opens tends to do better than a late one.
How to register and apply
- Get mortgage approval in principle. Approval in principle is a lender's early estimate of what it may lend you. A broker (on the Central Bank's register) or a mortgage advisor can help with it. If banks will not lend enough, apply for the council loan.
- Gather your documents: photo ID, proof of address, payslips, bank statements, proof of deposit, tax documents.
- Watch for a scheme in your area and read its rules.
- Apply online within the window.
- The council ranks applications under its scheme of priority. The order is often first come first served, with the date and time of your application as the tie-breaker.
- If you are offered a home, you get a set time to confirm your mortgage and sign contracts.
- Your solicitor (check the Law Society's register) does the legal work. A conveyancing solicitor handles the contract, the mortgage and the council's affordable dwelling contribution agreement.
The scheme of priority
Each council adopts a scheme of priority. It says how applications are ordered when there are more applicants than homes. Common factors are the date of application, the number of people in the household and a connection to the area. Read your council's scheme before you apply.
How it compares with the First Home Scheme
| Affordable purchase | First Home Scheme | |
|---|---|---|
| Who sells | Your council or the LDA | A private developer |
| Who keeps the share | The council or the LDA | First Home Scheme DAC |
| Price | Below market value | The developer's price, within a ceiling |
| Share | The discount, as a percentage | Up to 30% (20% with Help to Buy) |
| Yearly charge | None in general; check the terms | A service charge from year six |
| Both at once | No | No |
You cannot use the affordable purchase scheme and the First Home Scheme on the same home. The First Home Scheme guide explains that scheme in full.
Selling later
When you sell, the council's share comes out of the sale price. On the example above, a sale at €400,000 would give the council 23% of that, which is €92,000. Grace keeps the rest after her mortgage is paid off. If she had bought out the share before the sale, she would keep it all.
Where this leaves you
Check what price your mortgage and deposit reach on the First Home Scheme calculator, which shows the gap a share would need to fill. Then get approval in principle and watch your council's site. The first-time buyer journey lays out the steps. When a scheme opens, get quotes from a broker and a solicitor.
Questions people ask
What is the affordable purchase scheme in Ireland?
A scheme under the Affordable Housing Act 2021 where a council, or the Land Development Agency, sells a new home below its market value. The council keeps a share of the home equal to the discount. You buy that share back later.
Who is eligible for affordable housing in Ireland?
First-time buyers and Fresh Start applicants whose mortgage limit plus deposit cannot reach the full price. Each council sets its own rules on income, household size and local connection for each scheme.
How do I apply for affordable housing?
Each council advertises its schemes on its own site and on affordablehomes.ie. You apply online in the window the council sets, with your income, deposit and mortgage approval in principle. The council ranks applications under its own scheme of priority.
What is the difference between the affordable purchase scheme and the First Home Scheme?
The affordable purchase scheme sells you a council or LDA home below market value, with the council keeping a share. The First Home Scheme helps you buy a home from a private developer, with the scheme taking a share. You cannot use both on one home.
What is a starter home?
A starter home is a plain name for a first home, usually a smaller new build aimed at first-time buyers. It is not a separate scheme. The schemes that help are affordable purchase, the First Home Scheme and Help to Buy.