Buying your local authority house or flat
- Information
- Tenant Purchase of Apartments Scheme (TPAS)
- Tenant Purchase Scheme (for houses)
- Rules of Tenant Purchase Scheme
- Where to apply
- Further information
Information
Tenants of local authority houses or apartments may be able to buy their homes from the local authority through various purchase schemes.
In general, all local authority houses are included, with the exception of houses provided for and occupied by older people. Apartments and flats were not included in the past, but a new Tenant Purchase of Apartments Scheme (TPAS) was launched in January 2012 - see below.
Local authorities can exclude dwellings from the schemes either for reasons of good estate management; or because of their structural condition; or if they plan to carry out remedial works to them.
Tenant Purchase of Apartments Scheme (TPAS)
This scheme came into effect on 1 January 2012.
For an apartment complex to be eligible for designation for tenant purchase, it must:
- Comprise at least 5 apartments (other than community apartments)
- Not contain retail units or apartments designed for older people
- Satisfy criteria set out in section 51 of the Housing (Miscellaneous Provisions) Act 2009
In addition, at least 65% of tenants must support designation of the complex.
When apartments are being sold in a designated complex, the housing authority will transfer ownership of the entire complex to an apartment owners’ management company. The management company will immediately lease all the apartments back to the authority for continued letting to tenants, who will then have the option of buying them from the authority.
Sales will follow the incremental purchase model. There will be discounts of 40%, 50% or 60% off the purchase price, depending on household income. There will also be a local authority charge that reduces by a set proportion each year.
Before the first apartments are sold
Housing authorities will have to undertake a considerable amount of preparatory work before they can sell individual apartments to tenants. This work includes:
- Assessing the suitability of selected apartment complexes
- Establishing annual maintenance costs in order to calculate annual service charges for people buying apartments
- Consulting tenants and conducting a vote
Tenant Purchase Scheme (for houses)
This scheme is open to tenants with at least 1 year’s tenancy. It is to be wound down by the end of 2012. It is being replaced by the Incremental Purchase Scheme, which allows people who qualify for social housing to buy a new house from a local authority or approved housing body at a discount.
Price
The price of the house is its market value as determined by the local authority in its existing state of repair and condition, minus discounts. The structural condition of the house is taken into account and any increase in the market value due to improvements you made to the house is disregarded in calculating the price.
If you disagree with the local authority's valuation of your house, you can contest it by getting a valuation certificate from a qualified valuer. If there is a significant difference between the local authority's original valuation and the valuation submitted by you, then the local authority will refer it to the Valuation Office.
Mortgage
You can either get a mortgage with a bank or building society or you can apply for a local authority mortgage. This may be a variable interest rate loan so that repayments will go up or down with general interest rates or the interest rate will be fixed for the first 5 years of the loan.
Rules of Tenant Purchase Scheme
You must have been a tenant of a local authority house for at least a year in order to buy it under the Tenant Purchase Scheme.
You will be allowed a discount of 3% of the value of the house for each year of the tenancy of a local authority house up to a maximum of 10 years plus €3,810.
Since 1 April 2011, stamp duty is payable on all tenant purchase houses. The maximum payable is €100.
If you want to sell the house within 20 years of the date you bought it or before you have acquired full ownership, you must get the consent of the local authority.
Where to apply
Contact the Housing Department of your local authority.
Further information
Tenant Purchase Scheme - extra discount for 2011 only
In Budget 2011, a higher discount was introduced in the short term for existing local authority tenants wishing to purchase their houses under the Tenant Purchase Scheme. This special discount ended on 31 December 2011.
Language
Related Documents
- Shared Ownership Scheme
This scheme enabled low-income purchasers to buy a proportion of a home to begin with, increasing in steps until the whole house was owned. It has now been stood down. - Low cost housing sites
Local authorities may provide housing sites at low cost to help people in housing need to provide their own housing. - Applying for local authority housing
The steps involved in applying for a local authority house or flat.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.