The Government has announced significant changes to its council-backed mortgage schemes, raising both property price caps and income limits in a move aimed at easing pressure in the housing market.
Housing Minister James Browne confirmed that updates to the Local Authority Home Loan and the Local Authority Purchase and Renovation Loan will take effect in the second quarter of 2026.
The schemes are designed to support first-time buyers and applicants seeking to purchase or refurbish vacant and derelict properties. Buyers may also qualify for the Vacant Property Refurbishment Grant.
Since February 2018, more than 4,300 people have purchased homes through the Local Authority Home Loan and the former Rebuilding Ireland Home Loan scheme.
Higher property price caps
In Dublin local authority areas, as well as Kildare and Wicklow, the maximum eligible property price rises from €360,000 to €415,000.
In Galway City, Cork City, Meath and Cork County, the cap increases to €375,000.
Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford see the limit rise to €345,000, while Galway County and Louth increase to the same level.
In Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary, the cap rises from €275,000 to €310,000.
Income limits increased
The income threshold for single applicants will increase nationwide from €70,000 to €80,000. The joint applicant limit remains unchanged at €85,000.
Interest rates
The Local Authority Home Loan offers:
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4% fixed for up to 25 years (APR 4.07%)
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4.05% fixed for up to 30 years (APR 4.13%)
The Government says the reforms are intended to make home ownership more accessible as housing costs continue to rise across the country.