More Laois people may get Laois County Council loans to buy houses under changes

Houses costing up to €275,000 are now eligible for a Local Authority Home Loan in Laois. 

Minister for Housing Darragh O’Brien announced changes to the Local Authority Home Loan meaning more people in Laois are eligible to apply for the State-backed mortgage. 

The prices of homes eligible for a Local Authority Home Loan and income limits of those eligible to apply for a loan are being increased. 

From March 01, 2023, house price limits for homes in Laois that are eligible for the Local Authority Home Loan will increase by €25,000 from €250,000 to €275,000. Income limits for joint applicants will increase to €85,000 and the income limit for a single applicant in Laois will increase to €70,000.

The borrowing limit will be €247,500 for a €275,000 loan and the rates are fixed at 3.35%  for up to 25 years (APR 3.40%)  and 3.45%  for up to 30 years (APR 3.51%).

Laois is in the same category as Offaly, Monaghan, Cavan, Donegal, Tipperary, Kerry, Mayo, Roscommon, Sligo, Leitrim, Longford and Carlow. 

People in Kilkenny can borrow towards a top house price of €300,000 while in neighbouring Kildare the house price limit is €360,000.

The Local Authority Home Loan was launched in January 2022 as part of Housing for All. It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. 

It can be used for new, second hand or self-build homes. It means those on more moderate incomes are helped by the State to achieve homeownership, a key aim for this Government. 

“I am delighted to announce these improvements to the Local Authority Home Loan which will take effect from March 1st. Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people in Laois can access the loan,” said Minister O’Brien. 

"Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan. The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan. 

"The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people in Laois who want to own their own home,” said Minister O’Brien. 

Since February 2018 over 3,300 people have got on the property ladder through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.

Minister O’Brien, along with Public Expenditure and Reform Minister Paschal Donohoe TD, will sign the amendment regulations in the coming weeks. The changes will take effect on 01 March 1, 2023. 

Minister Pippa Hackett described changes to the Local Authority Home Loan as very good news for those buying a home in Laois, Offaly and the wider Midlands region.

“I believe this scheme takes a very fair approach to people who, often through no fault of their own, were falling between two stools previously. I look forward to this revised scheme widening the net and helping more people and families to build lives in Laois and Offaly,” she remarked. 

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Laois Offaly Fianna Fail TD Barry Cowen also welcomed the announcement.

"The changes reflect the reality of today’s housing market and Government will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people who want to own their own home,” said  Deputy Cowen.