Tenant Purchase I
1995 Scheme
There have been various tenant purchase schemes whereby the vast majority of housing by local authority has been sold. The 1995 tenant purchase scheme was closed to new applicants on 31st December 2012. The scheme included all houses except certain ones provided for and occupied by older persons. It is proposed to replace the scheme.
Under the 1995 scheme, it was necessary to be a tenant for at least one year. A three per cent discount was allowed for each year of tenancy up to a maximum of ten years plus €3,810. Reduced stamp duty was payable with a maximum of  €100. If the property is sold within 20 years of the sale, the consent of the authority is required.
A tenant must hold under a tenancy of at least a year. The price is determined as the market value by the local authority in its existing state of repair and condition.
Discounts are allowed. Permanent increases in value due to improvements by the tenant are regarded. It is possible to challenge the local authority’s valuation and refer the matter ultimately to the valuation office.
The property may be purchased with a financial institution or mortgage or local authority mortgage.
Incremental Purchase Scheme 2010
The Incremental Purchase Scheme for newly built houses allowed people who qualify for social housing (including existing social housing tenants) to buy designated newly built houses from a local authority or approved housing body at a discount. It did not apply to apartments, flats or existing local authority houses.
Local authorities would advertise if and when newly built units are available for sale under this scheme. Application forms will be available from your local authority.
The Incremental Tenant Purchase Scheme 2016 for existing local authority houses,is modelled on the 2010 scheme.
2012 Apartment Scheme
A tenant purchase apartment scheme came into effect on 1st January 2012. The apartment scheme must comprise at least five apartments other than communal apartments. There must be no retail units or apartments designated for older people. It must satisfy criteria in Section 51 of the 2009 Housing Miscellaneous Provisions Act.
65 per cent of the tenants must support the designation of the complex. Where apartments are sold in a designated complex, the housing authority will transfer ownership of the entire ownership of the entire complex to the owner’s apartment management company. They will lease the unsold apartments on long ownership type leases back to the authority for the continued letting of the tenants who will have the option to buy.
Sales follow the incremental purchase model. There are discounts of up to 40, 50, or 60 per cent of the purchase price, depending on income. There is a local authority charge, which is reduced gradually.
Incremental Tenant Purchase Scheme 2016
Local authority tenants who qualify for this scheme can buy their homes at a discounted rate from the local authority. It opened on 1 January 2016 and replaced the previous Tenant Purchase Scheme 1995.
To qualify for this scheme, the person concerned must have:
- Been getting social housing support for at least 10 years. With a joint tenancy, only one tenant needs to meet this condition.
- An annual income of at least €11,000 per year. Income can be a combination of your gross income from wages and your income from some social welfare payments. A person will not qualify if his income is only from social welfare payments unless you are getting the State pension. All social welfare payments except the State pension are regarded as secondary income.
Financial Terms
There is a discount of 40% to 60% off the purchase price of the house, depending on income. The local authority put an incremental purchase charge on your house. This charge is equal to the discount on the price of the house.
This charge is reduced by 2% each year until no charge remains after a specified number of years. This applies if there is a resale of the house or breach of the terms and conditions of the scheme during this specified period (20, 25 or 30 years).
If the house is sold within this specified period, the outstanding incremental charge on the house is repayable to the local authority.
This table shows the percentage discount you can get on the purchase price depending on your income and the number of years until the incremental charge ends.
| Income | The % discount on the purchase price | Number of years until the charge is complete |
| €20,000 or less | 60% | 30 years |
| Between €20,001 and €29,999 | 50% | 25 years |
| €30,000 or more | 40% | 20 years |
This scheme was introduced under the Housing (Sale of Local Authority Houses) Regulations 2015. The rules of the scheme were amended in 2022 by the Housing (Sale of Local Authority Houses) (Amendment) Regulations 2021.