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The sale of new local authority houses

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Scheme Summary - 2010 Incremental Purchase Scheme

In June 2010 an Incremental Purchase Scheme for new local authority build houses came into effect. The Scheme does not apply to apartments/flats or existing local authority houses.

However, a  scheme for the purchase of existing local authority houses came into effect in January 2016.


The 2010 Incremental PurchaseScheme 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. However, you  may qualify for a local authority House Purchase Loan.

The rules applying to the scheme are set out in the Housing (Incremental Purchase) Regulations 2010 (S.I. No. 252 of 2010)

How do I apply ?

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.

Where do I apply ?

If and when your local authority advertises the sale of newly built houses you must apply directly to the local authority .

Who do I contact if I have queries?

All queries should be directed to your local authority.


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The Department of Housing, Local Government and Heritage requires customers to provide certain personal data in order to carry out our legislative and administrative functions. The Department will treat all information and personal data that you provide as confidential, in accordance with the General Data Protection Regulation and Data Protection legislation. Personal data may be exchanged with other Government Departments, local authorities, agencies under the aegis of the Department, or other public bodies, in certain circumstances where this is provided for by law. 

The Department's Data Protection Policy and Privacy Statements, which set out how we will use your personal data, as well as providing information regarding your rights as a data subject, are available on the Department’s website.  They are also available in hard copy upon request from the Data Protection Officer, Department of Housing, Local Government and Heritage, Newtown Road, Wexford, email