124. Deputy Edward Timmins asked the Minister for Housing, Local Government and Heritage his views on widening the income limits for qualification for affordable housing; and if he will make a statement on the matter. [48304/26]

201. Deputy Conor Sheehan asked the Minister for Housing, Local Government and Heritage to review the operation of local authority affordable housing purchase schemes, specifically the use of lottery-based allocation systems, in view of the fact that these systems are excluding applicants who have been on waiting lists for extended periods; if he plans to issue revised national guidelines to ensure greater transparency, fairness, and priority for long-term applicants in the allocation of affordable purchase homes; and if he will make a statement on the matter. [47821/26]

I propose to take Questions Nos. 124 and 201 together.

The affordable purchase scheme (Starter Home Purchase Scheme) was introduced under the Affordable Housing Act 2021. Local authorities make newly built homes available at a reduced price for first-time and other eligible buyers who cannot afford to purchase these homes at open market value. The local authority takes a percentage equity share in the home equal to the difference between the open market value of the home and the reduced price paid. This means that if a home is purchased at a 20% reduction on the open market value, the local authority will have a 20% equity share in the home. There are no income limits for this scheme.

For the Starter Home Purchase Scheme, each local authority will have a Scheme of Priority for the allocation of homes. The Affordable Housing Act 2021 allows for the Scheme of Priority to include matters such as priority be given to applicants based upon date and time of application and priority given to eligible applicants in relation to a particular dwelling, or class of dwelling, having regard to the size or composition of the eligible applicant’s household.

Homes made available under the Starter Home Purchase Scheme are not allocated by lottery, and Local Authorities do not retain waiting lists for affordable purchase housing.

Under the Delivering Homes, Building Communities action plan, Cost Rental is a key element of the Government’s strategy to enhance affordability in the rental sector and provide secure, long-term housing for middle-income households. The fundamental principle underpinning Cost Rental is that rents are set to cover the costs of developing, managing, and maintaining homes. This ensures the long-term financial sustainability of the scheme, while shielding rents from market pressures. Cost Rental is an expanding housing tenure in Ireland, with more than 6,000 homes delivered by Q4 2025 and a substantial pipeline of future developments now in place.

Cost Rental is aimed at households within the middle-income range who are not eligible for social housing, but who may face significant affordability challenges in the private rental market. Income eligibility criteria play a key role in ensuring that these State-supported homes are targeted effectively at this group. The primary requirement is that a household’s net annual income falls below specified limits, which, since 1 August 2023, are set at €66,000 in Dublin and €59,000 elsewhere under secondary legislation. Net income is calculated as gross income less deductions for income tax, USC, PRSI, and pension contributions.

The legislation governing Cost Rental provides flexibility in setting household income limits, enabling a broad range of factors to be considered rather than relying on a single metric. These factors can include prevailing economic conditions, Government policy priorities, and both the current position and future direction of the Cost Rental sector.

The Programme for Government 2025 includes a commitment to “keep Cost Rental income criteria under review” to ensure they remain appropriate and effective. My Department is progressing this work.