A GOVERNMENT SCHEME to let councils snap up homes when landlords are looking to sell is unable to meet the ballooning valuations for some parts of south Dublin.

One woman has described how the two-bedroom privately-rented bungalow she has lived in with her daughter since 2019 has shot up approximately €250,000 in value over the past six years, and is now worth €700,000.

Dublin City Council has now said it will not purchase the home from the landlord as the local authority has capped its maximum spend for a home under the scheme at €527,000.

It means the steep increases in the property market are widening the gap between the money available for the government’s Tenant in Situ scheme and 2025 house prices.

The measure allows councils to step in and purchase a privately rented home receiving the Housing Assistance Payment where a landlord is looking to sell.

It has had some significant success to date – over the past two years alone, the scheme stopped more than 2,500 households nationwide from being evicted and losing their home, according to recent figures provided by the housing department.

But the scheme been floundering in recent months amid more restrictive changes that the government’s critics say have seen it begin to wither.

In the case of the family in Rathmines, the woman and her 7-year-old child face homelessness due to the upcoming loss of a house they have rented for the past six years.

“This modest two-bedroom was the only home that would accept us anywhere in Dublin,” the woman, who asked for anonymity, told The Journal.

Since then, it has become our sanctuary, offering stability, security, and a sense of belonging. My daughter has built strong friendships in her local school and community, and this home has been the foundation of our lives.

Following the death of the landlord, the surviving family members agreed to sell the home via the Tenant in Situ scheme following talks with the young mother.

“The property met all eligibility criteria, and the landlords, acting under power of attorney, agreed to participate,” she said.

“Initially, I was reassured that DCC would offer a fair market value for the property. But months later, I was told that no offer would be made—because the property valuation exceeded outdated government cost guidelines.”

The tenant also offered a shared-ownership proposal to the council to make up the €200,000 shortfall, which was rejected under the current terms of the Tenant in Situ scheme.

“I offered to contribute to the shortfall through a local authority home loan, but it was refused,” the woman said.

“I can contribute privately, but somehow that’s not allowed publicly — and the result is the same every time: homelessness. There’s no bridge, no warning, just a six-month countdown to leave — but how is anyone supposed to plan for that? I’ve offered real solutions, but they’re met with refusal.”

Tenants union calls for action

Members of Community Action Tenants Union (Catu), have launched a petition calling for the establishment of a mandatory Tenant in Situ purchase policy, so that if a tenant qualifies for social housing and their landlord is selling, the council must purchase the property.

It noted that there were 9,650 households getting the Housing Assistance Payment living in Dublin 6, where Rathmines is located, as of 2022, illustrating the “need for affordable housing” in the area.

The group also called for increased funding for the scheme so that local councils could more easily manage mandatory purchases at market value.

A Catu statement cited data released by the Central Statistics Office last year showing that over 12,000 dwellings were purchased by non-household entities in 2023, accounting for 20% of all new purchases.

“Tenants cannot compete with corporations for housing,” the group said, adding that restrictions on the Tenant in Situ schemes only “benefit investment funds, not individuals and families in need of a home.”