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File image of a derelict property in Co Donegal Alamy Stock Photo

Home Loan scheme expanded to first-time buyers who wish to renovate vacant or derelict properties

The number of grants actually paid out to date is just 375.

THE GOVERNMENT IS to extend the Local Home Authority Loan to support first-time buyers who want to purchase and renovate vacant or derelict homes.

Previously, only homes which were habitable were eligible for the Local Authority Home Loan and the loan was only available for the purchase of the property, not renovation. 

The Local Authority Home Loan was launched in January 2022 as part of Housing for All strategy, with the aim of supporting borrowers who are unable to get sufficient finance from commercial banks to buy or build a home.

To date, the number of grants applied for stands at 8,194, with 5,049 of those being approved. The number of grants actually paid out to date is just 375. 

Housing Minister Darragh O’Brien today received government approval for the Local Authority Purchase and Renovation Loan (LAPR), and this expansion will cover the purchase and/or renovation of non-habitable homes that are eligible under the existing Vacant Property Refurbishment Grant. 

A spokesperson from the Department of Housing said the Vacant Property Refurbishment Grant has been “incredibly popular to date”, with over 8,100 applications received under the scheme so far. 

Of the over 8,100 applications that have been made, around 5,000 have been approved.

However, only 375 have been paid to date though a Department spokesperson said this number is “expected to rise very substantially over the coming months”.  

Under the new LAPR expansion approved today, a first-time buyer who wishes to turn a vacant or derelict property into a new home can receive a loan to fund both the purchase and renovation works. 

Eligibility for the new support is subject to the applicant meeting the existing local authority mortgage lending criteria, which includes applicants being first time buyers or “Fresh Start” applicants and is subject to income limits for borrowers of €70,000 for a single and €85,000 for a joint applicant. 

Applicants must also be unable to source sufficient financing from commercial lenders to be eligible, and those who have already purchased the home which is the subject of the renovation loan application will be allowed to apply for funding to renovate the property.

In addition to this,  the maximum end-of-works market values of the property cannot exceed:

  • €360,000 in Dublin, Kildare or Wicklow,
  • €330,000 in Cork, Galway, Louth or Meath,
  • €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath or Wexford
  • €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo or Tipperary.

The Department spokesperson added that the introduction of the LAPR “significantly expands the types and numbers of homes eligible under current local authority mortgage lending rules”.

Speaking today, O’Brien said: “The extension of local authority mortgage lending to the purchase and renovation to all homes eligible for the Vacant Property Refurbishment Grant will help people who are struggling to complete the purchase and renovation of a vacant or derelict property and will give them the necessary finance to make their project viable.”

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    Mute P. J.
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    Jun 5th 2024, 1:42 PM

    Watch the price of vacant and derelict houses go up……..

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    Mute Steve O'Hara-Smith
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    Jun 5th 2024, 2:00 PM

    @P. J.: Hence the price caps.

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    Mute P. J.
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    Jun 5th 2024, 2:07 PM

    @Steve O’Hara-Smith:
    They are easy to get around with under the counter payments.

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    Mute Derek Lyster
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    Jun 5th 2024, 2:39 PM

    @P. J.: they already have, there are houses thst are being held together with Ivy that went up €70k when the first scheme was rolled out. We are great at ripping off each other in the country.

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    Mute brian o'leary
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    Jun 5th 2024, 3:37 PM

    @Derek Lyster: god bless the free market. Yèeeeeeeeeee hhaaaaaaaaw.

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    Mute P. J.
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    Jun 5th 2024, 7:14 PM

    @Derek Lyster:
    100% correct, I work in the property sector.

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    Mute Ross
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    Jun 5th 2024, 1:45 PM

    Ya’d almost think it’s an election year….. wonder why it wasn’t like that from the start?

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    Mute ItWasLikeThatWhenIGotHere
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    Jun 5th 2024, 2:52 PM

    When the cause of any problem is insufficient supply, then throwing more money at buyers only results in increased prices.

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    Mute Oh Mammy
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    Jun 5th 2024, 3:27 PM

    @ItWasLikeThatWhenIGotHere: when the solution to any problem is the government the problem only get exasperated.

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    Mute brian o'leary
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    Jun 5th 2024, 3:32 PM

    @ItWasLikeThatWhenIGotHere: well put!

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    Mute ItWasLikeThatWhenIGotHere
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    Jun 5th 2024, 3:45 PM

    @Oh Mammy: Incorrect.

    The problems we are experiencing now are due precisely to the state abrogating its responsibility to “The Market”.

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    Mute Sun Rise
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    Jun 5th 2024, 1:50 PM

    Good news announced. The whinging and moaning on here appears.

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    Mute F Fitzgerald
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    Jun 5th 2024, 2:04 PM

    @Sun Rise: Well, it only applies to first-time buyers. What of people who have split up and still need to find a home?

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    Mute Kevin Collins
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    Jun 5th 2024, 2:13 PM

    @F Fitzgerald: They are covered by the “Fresh Start” category.

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    Mute damien leen
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    Jun 5th 2024, 2:14 PM

    @Sun Rise: yea cause this is an island paradise with absolutely nothing to whinge about…get real!

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    Mute 087 bed
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    Jun 5th 2024, 5:37 PM

    Big problem is Banks wont lend on a property unless it’s habitable, So you wont get a mortgage on a derelict property, It’s also time to abolish the “local needs” BS.

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    Mute Sean Money
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    Jun 5th 2024, 2:00 PM

    Loan sharks now moving in, more gangsters

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    Mute scarke
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    Jun 5th 2024, 4:11 PM

    According to our experience it is very difficult to prove a house has been vacant for three years……and there are so many issues that they do not tell you about…if you go for the vacant property grant, if you then find yourself having to sell it before 7 years, you have to pay it all back….its a bit of a joke….just like the grants available for renovation etc

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    Mute P. J.
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    Jun 5th 2024, 7:18 PM

    @scarke:
    Well said, as mentioned earlier it has led to price increases for derelict buildings but when people go to get the likes of the vacant house grant it’s quite difficult to access, leading people to abandon the grant and try doing it without.

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    Mute john kenny
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    Jun 5th 2024, 2:24 PM

    Good news.

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    Mute Michael James Brennan
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    Jun 5th 2024, 5:11 PM

    Election and fear of a landslide rejection can work wonders in the gullible. I wonder how many “Connected” got the tip off. I can name a few !!!!

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    Mute Miami Mercenary
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    Jun 5th 2024, 4:22 PM

    I smell a rat

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    Mute Thesaltyurchin
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    Jun 5th 2024, 9:36 PM

    Did this. No grants, loan schemes at the time, never is in my personal experience. Oh well boo hoo

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