Printer-friendly versionPrinter-friendly version

New Incremental Tenant Purchase Scheme

Published on Wednesday, 18 Nov 2015

New Incremental Tenant Purchase Scheme


Mr. Alan Kelly, T.D., Minister for the Environment, Community and Local Government today (18 November, 2015) announced that he has signed the statutory instruments required to introduce a new tenant purchase scheme from 1 January 2016 for existing local authority houses.  This scheme will replace the 1995 tenant purchase scheme, which closed for new applications in December 2012.

In making the announcement, the Minister emphasised the importance of tenant purchase in providing opportunities for local authority tenants to become homeowners, as a means of promoting sustainable communities, while generating additional funding from sale proceeds for local authorities to invest in a range of social housing supports. He also emphasised the reduction in housing maintenance costs which local authorities will have to pay in upkeep of properties, and the resources which can be freed up for delivering new housing schemes as a result.

The scheme will operate along the incremental purchase model already in place for certain newly-built local authority houses and for local authority apartments.  The discounts are based on tenant, etc., income and will enable tenants to purchase their houses earlier than under previous tenant purchase schemes.  The new scheme will also promote sustainable communities by encouraging tenant purchasers to stay in their homes for a reasonable period after purchase.

The new scheme involves a discount for a purchaser of 60%, 50% or 40% off the purchase price of the house and an incremental charge on the house equivalent to the discount.  This charge reduces to nil over a period of years in annual increments of 2% of the total value of the house, unless the tenant purchaser resells the house or fails to comply with sale conditions during the charged period.  In the event of a resale within the charged period, the tenant purchaser will be required to pay to the local authority the outstanding incremental charge on the house from any resale profits.

Minister Kelly said:  “I know many local authority tenants will be very interested in this scheme which I have delivered. Local authority tenants all over the country now have the opportunity to become homeowners from January 1st.

“This is about giving local authority tenants a better opportunity to own their own home, and building stronger and more stable communities. This really is a win-win for both the tenant and the local authority, as the tenant has the opportunity to own their own home, and the local authorities will have resources freed up which can be directed towards the delivery of new social housing units.”

The Minister of State Paudie Coffey concluded by saying “The new tenant purchase scheme underlines the Government’s commitment to implementing the reforms set in the Social Housing Strategy 2020 and is a very positive development for all tenants of local authority houses.  I would encourage tenants to consider whether they wish, and can afford, to avail of this opportunity to buy their homes from their local council”



Press  Office

Tel: (01) 888 2638  (direct)

(01) 888 2000


Web site: