Affordable Purchase Scheme
A reduced price on a new home from your local authority, where the council takes an equity share of 5% to 40% equal to your discount.
Last checked October 2026
What it is
Buy a new home below market price; the council takes an equity share equal to the discount, redeemed later. Since July 2026 the government's own campaign material also calls this the Starter Home Purchase Scheme, same scheme, new consumer-facing name, nothing about the terms has changed. The condition people trip on is that this is built around a mortgage. Your price is worked out from your maximum mortgage capacity, and to be eligible that capacity must be no more than 85.5% of the home's full market value, worked out without any Central Bank exemption. In other words the scheme is for people who cannot borrow enough, not for people buying with cash. Your savings are counted too. Mainly for first-time buyers, though the Fresh Start rule also covers you if you are separated or divorced, or came through insolvency with no stake in your former home. Couples must apply jointly. Your council runs it and advertises homes as they come up.
Who can get it
- You are a first-time buyer or a Fresh Start applicant. That covers people whose relationship ended and who no longer live in the old family home or have any financial interest in it, people who lost a home through insolvency or bankruptcy and in some cases people whose former home is too small for their household.
- You are over 18, you have the right to reside in the State and you will live in the home as your main residence. Couples apply jointly.
- You cannot afford the home at full price. Your gross household income multiplied by four must be no more than 85.5% of the market value. If your actual mortgage capacity is lower than your gross household income multiplied by four, the council assesses your actual mortgage capacity instead and you need a letter from your lender showing it.
- You have a deposit of at least 10% of the purchase price.
- Your price depends on your income. The council assumes you can borrow four times your gross income. If your actual mortgage capacity is lower than that, the council uses your actual capacity instead and you must provide a letter from your lender. A higher income means you pay more and the council takes a smaller share. There is no minimum income, but each home has a minimum price you must be able to pay using a mortgage, savings and Help to Buy.
- Your savings are counted. Savings above the deposit the council assumes you have and a further €30,000 count towards what you can afford. If your total buying power would be more than 95% of the market value, you do not qualify, because you need at least a 5% equity share. The council works out the exact figures, so ask it for your result.
- The council's share can be from 5% to 40%. You can buy it back at any time, in part or in full, with a minimum repayment of €10,000. It must be repaid after 40 years or if you sell and other events such as your death can trigger repayment.
- Help to Buy can go towards your deposit and a Local Authority Home Loan can be the mortgage. The First Home Scheme is a separate scheme for private developments and does not apply to council homes.
- When more people apply than there are homes, applications are ranked by date and time of receipt and household size. A council may assign 30% of a development for people with a local connection. You pay your own legal costs and stamp duty.
How to apply
Watch newstarterhomes.ie and your local authority's website for developments. Each advertisement sets out the opening and closing dates, the prices and the documents you need. Have your mortgage approval in principle ready before you apply.
Go to the official page →Checked against the official source on 7 October 2026. Always confirm the details on the official page before applying.
Questions people ask
How much cheaper is a starter home?
The council takes an equity share of between 5% and 40% of the market value and the share equals your discount. If you buy at a 20% reduction, the council holds a 20% equity share. The share depends on your income and borrowing power.
Do I have to pay back the council's share?
You can buy it back at any time, in part or in full, with a minimum repayment of €10,000. It must be repaid after 40 years or if you sell the home. The council does not become a co-owner of the home.
Can I use Help to Buy or a Local Authority Home Loan?
Yes to both. Help to Buy can go towards your deposit, if your mortgage plus the council's equity share is at least 70% of the market value. A Local Authority Home Loan can be your mortgage if you could not get enough from a bank. The First Home Scheme is for private developments, not council homes.
How do I apply?
Homes are released in phases and advertised by local authorities and on newstarterhomes.ie, with opening and closing dates. Most councils run an online application platform. Applications are recorded by date and time of receipt, so be ready with your documents.
Related guides
- Help to Buy
- First Home Scheme
- Local Authority Home Loan
- Cost Rental Tenant in Situ
- Mortgage Interest Tax Credit
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