The Incremental Purchase Scheme allows social housing tenants to purchase a dwelling from the Council. Initially the purchaser will only have to purchase part of the equity in the property. This scheme replaces previous Tenant Purchase Schemes.
Who is eligible?
Social housing tenants with a minimum earned income of €15,000 per annum are eligible. Applicants must be in employment. Applicants with a poor credit history, a record of anti-social behaviour or who have already purchased a property from the Council are not eligible for the scheme.
How does it work?
The applicant purchases equity in the house with a mortgage. The table below shows the equity applicants can purchase based on their income.
| Income Band |
Purchased Equity |
Amount of purchased equity based on purchase price of €180,000 |
Period Council charge remains in place |
| €15,000 - €19,999 |
40% |
€72,000 |
30 years |
| €20,000 - €29,000 |
50% |
€90,000 |
25 years |
| €30,000+ |
60% |
€108,000 |
20 years |
The Council's charge on the property for the unpurchased equity is reduced by 2% per annum for the period set out in the table above. The reduction does not take effect until after five years, at which stage 10% reduction is applicable.
What is the purchase price?
The price is set by the Council.
Can the property be sold by the purchaser?
Yes. An amount of money based on the Council's charge on the property must then be paid.
An example of this is set out below:
Market Value (year 10): €260,000
Initial equity stake of purchaser: 40%
Increase in equity stake of purchaser over 10 years (2% x 10 years): 20%
Total equity of purchaser at year 10: 60% Remaining local authority charge: 40%
Amount to be paid to the Council (€260,000 x 40%) €104,000
Contact Housing for more details :
Phone: (0404) 20120
Email: housingloansandgrants@wicklowcoco.ie