The 2010 Incremental Purchase Scheme applies to new-build houses only.
The houses must be identified for sale by the local authority.
If you are in receipt of, or eligible for, social housing support, including those in RAS
or leased properties
and have a minimum gross annual income of €15,000 - you may apply if and when such houses are advertised for sale by your local authority.
You will pay the market value of the house – less a discount.
Depending on income, the discounts will vary between 40% and 60%.
Your local authority will also place a charge on your house called an ‘incremental purchase charge’.
This charge will be equal to the discount you get on the price of the house. The charge will remain in place for 20, 25 or 30 years (depending on the discount given).
Each year, the local authority will reduce the charge by 2%. At the end of the 20, 25 or 30 years, the charge will be zero as long as you obey the terms and conditions of the scheme.
You must live in the house as your normal place of residence and get agreement from your local authority if you want to sell, let or sub-let the house.
You will be able to resell your house at any time if your local authority agrees.
However, if you sell before the end of the 20, 25 or 30 years, you will have to pay back the value of the outstanding charge on your house to your local authority.
Like all homeowners, you will be responsible for maintaining and carrying out repairs on your house from the date you buy it. You will also have to get and keep adequate property insurance on your house – and pay for this yourself.
The financing of the purchase of the house is a matter for the tenant.
The relevant local authority
will advertise if and when newly built units are available for sale under this scheme. In such instances the necessary application forms will be available from your local authority.
You will need to complete the forms and return them within the required timeframe to your local authority for consideration.