Chapter 2 of 10 · Schemes and grants · 13 of 14
The tenant purchase scheme: buying your council house
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Buying your local authority home: eligibility, the discount, income rules, how the price is set and the charge the council keeps.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
The tenant purchase scheme lets a council tenant buy the house they live in. The council sells it at a discount of 40% to 60% off its value, and keeps a charge on the home that falls away over time.
This guide explains who qualifies, how the discount works, the income rule, how the price is set, the charge the council keeps, and how to apply. The figures come from gov.ie's page on the scheme. The mortgage calculator works out the repayment on the discounted price.
A worked example first
Marie has rented her three-bed council house for twelve years. The council values it at €220,000. Her income is €24,000 a year.
At that income, her discount is 50%. The price she pays is €110,000.
| Item | Amount |
|---|---|
| Market value | €220,000 |
| Discount at 50% | €110,000 |
| Price Marie pays | €110,000 |
| Council's charge on the home | €110,000, falling by 2% of the value each year over 25 years |
She pays €110,000 with a mortgage. The council keeps a charge of €110,000 on the home. Each year, the charge falls by 2% of the value. After 25 years it is gone. If she sells before then, she repays what is left of the charge.
What the scheme is
The scheme is the Tenant (Incremental) Purchase Scheme 2016. It is run by each council under the Housing (Miscellaneous Provisions) Act 2014. "Incremental" means the council's share of the discount falls away in steps, year by year.
It covers houses owned by local authorities. It does not cover apartments. It does not cover homes owned by approved housing bodies, which are the charities and trusts that provide social housing; they have their own arrangements.
Who qualifies
You must meet all of these:
- You are a tenant of the house under a tenancy with the council.
- You have been getting social housing support for at least ten years. That includes time as a council tenant and time on housing supports before it.
- Your reckonable income is at least €12,500 a year. Reckonable income is the income the council counts, after its own rules.
- The house is not excluded from the scheme.
The ten-year and €12,500 rules came in on 1 February 2022. Before that, the income floor was €15,000. Since 2022, long-term social welfare payments can count towards reckonable income. gov.ie's page carries the current rules, and the changes page tracks any change.
Which houses are excluded
Councils can leave some houses out. Common exclusions are:
- Houses built or adapted for older people or people with a disability.
- Houses in estates the council plans to redevelop.
- Houses the council needs to keep for a particular purpose.
- Houses let under certain short-term or emergency arrangements.
Ask your council whether your house is included before you apply.
The discount and the income bands
The discount depends on your reckonable income.
| Reckonable income | Discount | Years the charge runs |
|---|---|---|
| €12,500 to €19,999 | 60% | 30 |
| €20,000 to €29,999 | 50% | 25 |
| €30,000 and above | 40% | 20 |
The council sets the market value with its own valuer. The discount is taken off that. You pay the rest.
Check the bands on gov.ie's page before you apply; they are the figures on the page on 21 October 2026.
The charge the council keeps
The council does not give the discount away at once. It keeps a charge on the home equal to the discount. This is called the incremental purchase charge.
The charge falls by 2% of the value each year. Over 20, 25 or 30 years, depending on your band, it falls to nothing. If you sell the home, or stop living in it, while the charge is still there, you repay the part that is left to the council.
An example. A discount of 40% runs for 20 years. After 10 years, half of it has fallen away, so 20% of the value is left. Sell then, and you repay 20% of the value at that time to the council.
You also need the council's consent to sell during the charge period, and the home must stay your main home.
Paying for the home
You can pay with:
- A mortgage from a bank or other lender. The Central Bank's rules apply: up to 4 times gross income and 90% of the price for a first-time buyer. Gross income is pay before tax.
- The Local Authority Home Loan, if two lenders refuse you or offer too little. The council's own loan has an income limit of €80,000 for one applicant and €85,000 for two, and a fixed rate for the whole term.
- Savings, in full or in part.
On the example above, Marie's price is €110,000. A 90% mortgage is €99,000 and her deposit is €11,000. 4 times her income of €24,000 is €96,000, so a bank mortgage is limited to €96,000 and her deposit needs to be €14,000. The mortgage calculator shows the monthly repayment at today's rates.
A broker (on the Central Bank's register) or a mortgage advisor can approach lenders for you, and can give the two-refusals letter the council loan needs.
The other costs
- Stamp duty at 1% of the price you pay. On €110,000 that is €1,100. There is no first-time buyer exemption.
- A solicitor (check the Law Society's register) to handle the transfer, the mortgage and the council's charge. A conveyancing solicitor typically charges €1,500 to €3,000 plus VAT, plus outlays of €400 to €1,200.
- Mortgage protection insurance, required by law on a home loan.
- Home insurance, from the day you own the home.
- Local Property Tax from the next 1 November after you buy.
- Repairs, which become yours once you own the home. The council stops maintaining it.
How to apply
- Ask your council for the tenant purchase application form, or download it from the council's site.
- Fill it in with your tenancy details, your household's income and your proof of income.
- The council checks your eligibility and whether the house is included.
- The council values the house and sends you the price with the discount applied.
- You arrange the mortgage or the council loan.
- The council sends the legal documents to your solicitor.
- You sign, the price is paid, and the house is transferred to you with the council's charge registered on it.
Councils give their own timescales. Ask when you apply.
Help to Buy does not apply
Help to Buy is for new builds and self-builds only. A council house you already live in does not qualify. The Help to Buy guide explains the rules. The first-time buyer grants guide lists every scheme on one page.
Where this leaves you
Ask your council for the form and the valuation, then put the discounted price into the mortgage calculator to see the repayment. The first-time buyer journey covers the mortgage and the legal steps. When the price is set, get quotes from a broker and a solicitor.
Questions people ask
Who can buy their council house in Ireland?
A council tenant who has been getting social housing support for at least ten years, with a reckonable income of at least €12,500 a year, in a house the council has not excluded from the scheme. Apartments are not included. gov.ie's page sets out the current rules.
How much discount do you get on the tenant purchase scheme?
40%, 50% or 60% off the market value, depending on your income. The lower your income, the bigger the discount. The council keeps a charge on the home equal to the discount, which falls each year until it is gone.
Can I sell a house bought under the tenant purchase scheme?
Yes, but the council's charge must be repaid if you sell while it still applies. The charge falls by 2% a year over 20, 25 or 30 years. You also need the council's consent to sell during that time.
How is the price set under the tenant purchase scheme?
The council values the home at its market value. The discount is taken off that value. You pay the rest, with a mortgage, savings or the council's own loan.
Can I get a mortgage to buy my council house?
Yes. A bank mortgage, or the Local Authority Home Loan if two lenders refuse you. The Central Bank's rules apply to a bank mortgage in the usual way. The council can also look at long-term social welfare income under its own rules.