Affordable Home Purchase Scheme

The Affordable Home Purchase Scheme helps people on moderate incomes to buy new homes at reduced prices. Through this affordable housing scheme, Limerick City and County Council will take a percentage equity share (share of the ownership) in the home.

The scheme is open to First Time Buyers and Fresh Start applicants only.

It is aimed at households who cannot afford a home at its open market value using their combined deposit and their approved maximum mortgage.


How is the affordable purchase price of the homes decided?

The affordable purchase price will be calculated by Limerick City and County Council based on the “ purchasing power ” of eligible applicants. This calculation takes into account an eligible applicant’s maximum mortgage capacity and savings, and the minimum price set for the home by the Council.

The below table shows an example of varying applicant incomes and how they determine the affordable purchase price and the Council’s equity share of an affordable home with a market value of €300,000.

You can see that the higher an applicant’s income is, the more they will contribute to the price and the less of an equity share the Council will take. The Council will work this out for you as each house price will differ.

Example of an affordable home with a market value of €300,000
Income Equity % Equity Amount Standard Mortgage Capacity Deposit Purchaser Pays
€64,125 5.00% €15,000 €256,500 €28,500 €285,000
€64,000 5.19% €15,556 €256,000 €28,444 €284,444
€63,000 6.67% €20,000 €252,000 €28,000 €280,000
€62,000 8.15% €24,444 €248,000 €27,556 €275,556
€61,000 9.63% €28,889 €244,000 €27,111 €271,111
€60,000 11.11% €33,333 €240,000 €26,667 €266,667
€59,000 12.59% €37,778 €236,000 €26,222 €262,222
€58,000 14.07% €42,222 €232,000 €25,778 €257,778
€57,000 15.56% €46,667 €228,000 €25,333 €253,333

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How do I know if I am eligible?

To be eligible for an affordable housing scheme, in general you must meet the following criteria:

  • You must not have previously owned a home that you bought or built to live in. Exceptions apply for a Fresh Start Applicant.

  • Each person included in the application must have the right to reside indefinitely in the State.

  • Your income must be below a certain level. This is calculated by multiplying your gross household income by 4. This figure is known as your “ purchasing power ” and it must be less than 85.5% of the market value of the affordable home. For example, for an affordable home with a market value of €300,000, the maximum gross household income eligible to apply for the affordable home would be calculated as follows:

    Market Value €300,000
    85.5% of Market Value €256,500
    Divided by 4 €64,125 (Maximum gross household income limit)

    Please refer to the Affordable Purchase Dwelling Arrangements Income Assessment Policy for information on assessable income.

  • You cannot have more accumulated savings than the money required to cover the deposit for the home and an additional €30,000. Anything above this is added to your purchasing power. If your purchasing power plus your “extra” savings goes above 95% of the market value of the affordable home, you are not eligible for the scheme.

  • You are in a position to apply for a mortgage (you will be required to maximise your mortgage drawdown capacity).

    While it is not a requirement, it is strongly recommended that you have Mortgage Approval in Principle prior to applying to purchase an affordable home, or at least be in a position to apply for a mortgage.

    Or

    If you are unable to obtain a mortgage, you are in a position to apply for a Local Authority Home Loan.

  • You have sufficient savings to cover the minimum deposit of 10% of the purchase price of the affordable home.

    First Time Buyer applicants can avail of the Help to Buy Scheme which is operated by the Revenue Commissioners to assist them with their deposit.

In addition to the above eligibility criteria, a Scheme of Priority for Affordable Home Purchase Arrangements applies. It outlines the process applied where the number of eligible applicants exceeds the number of affordable homes available for purchase in the Affordable Housing Scheme.

In relation to 70% of the homes, priority as to which type of home is deemed to adequately cater to the accommodation needs of a household, will be made on the following basis:

Dwelling Type Meets accommodation needs of:
Four-bedroom dwelling 3 or more person household
Three-bedroom dwelling 2 or more person household

And then first come first served.

For the remaining 30% of dwellings, Limerick City and County Council will prioritise as follows:

Dwelling Type Meets accommodation needs of:
Four-bedroom dwelling 3 or more person household
Three-bedroom dwelling 2 or more person household

And then being, or having been resident, in the administrative area of Limerick City and County Council for a minimum period of 3 years, and then first come first served.

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How can I apply?

There will be an individual application for each affordable housing scheme. There is no rolling application form or waiting list. 

When affordable homes are made available for purchase, they will be advertised in the following places:

  1. Limerick City and County Council’s website
  2. Limerick City and County Council’s Social Media pages and
  3. In a local/national newspaper

The advertisement will include details about the scheme including how and when to apply. Applications will be accepted through an online application portal. On the day the application portal opens, you can proceed to complete the online application form and upload the requested documentation.  

Please be aware that applications will be prioritised on a first come first served basis.

We strongly recommend that you have mortgage approval in principle in place.

A link to the application portal along with a list of the required documentation will be available on Limerick City and County Council’s website when an affordable housing scheme becomes available and is open for applications.

Your application will be assessed, and it will be determined whether you qualify to purchase an affordable home or not. When all applications have been assessed and eligibility has been determined, Limerick City and County Council will contact all applicants to advise whether they have been successful and whether they will be receiving an offer or not, depending on the number of properties available.

Please click here to view the Affordable Housing Schemes currently open for applications.

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What is the Affordable Home Purchase Scheme Equity Share?

As part of the Affordable Dwelling Purchase Arrangement, Limerick City and County Council will retain an “Equity Share” in your affordable home.

The Equity Share, represented as a percentage value of the home, is the difference between the purchase price and the open market value.

For example, if you purchase an affordable home and the price you pay for the home is 15% less than the open market value of the affordable home, Limerick City and County Council will take a 15% equity share in your home.

The equity share can be redeemed or “bought out” at a time of your choosing, but there is no obligation for you to do so. If you choose not to redeem the equity share while living in the home, Limerick City and County Council may do so when the property is sold, transferred, after your death, or after a 40 year period.

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Apply for an Affordable Housing Scheme

Limerick City and County Council is currently progressing the delivery of affordable housing throughout Limerick City and County.  

Please see the Affordable Housing Schemes currently available below.

Woodfield Manor, Newcastle West, Co. Limerick

The application portal is now closed for this scheme.

Brú na Gruadán, Castletroy, Limerick

Phase 2 of this scheme will open for applications from 12:00 on Monday 13th May 2024 until 12:00 on Friday 7th June 2024.

Please click here to submit an application. Brú na Gruadán Affordable Housing Phase 2 | Limerick City & County Council's Online Consultation, Survey and Application Form Portal

  • For more information on this affordable housing scheme, please see Brú na Gruadán Affordable Housing Scheme. Bru Na Gruadan brochure
  • For more information on eligibility criteria and the application process, please see Brú na Gruadán Eligibility Criteria and Frequently Asked Questions. Bru na Gruadan Eligibility and FAQ.

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Contact Details for Affordable Housing

Any queries on affordable housing can be sent to affordable@limerick.ie

For further information on specific affordable housing schemes, please click here.

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This service is provided by

Housing Support Services

Phone +353 61 556000
Location
Limerick City and County Council, Merchant's Quay, Limerick, V94 EH90