Young people and working households in Donegal who earn too much to qualify for social housing but cannot afford to buy a home need more support, according to Councillor Martin Harley.
The issue was raised at a recent Donegal County Council meeting, where Harley highlighted the difficulties facing people trying to move from renting or living with family into home ownership.
The concern comes as the council advances a wider housing programme, with more than 1,300 homes in its pipeline over the next four years.
However, the number of homes planned does not by itself resolve the affordability barriers facing households who cannot access social housing or secure a mortgage.
Households caught between social housing and home ownership
For some households, the challenge is not simply finding a property. It is qualifying for the housing support available while also meeting the financial requirements for a mortgage.
People whose incomes exceed social housing eligibility limits may still struggle to save a deposit, meet mortgage repayments or borrow enough to buy a property at market prices.
Harley said more support was needed to bridge this gap and help people who want to own a home but cannot afford to enter the property market.
The issue raises questions about whether existing housing supports are reaching households whose earnings place them above social housing thresholds but leave them unable to buy privately.
Donegal Council examining affordable housing options
The council has already been considering ways to help households in this position.
In April 2026, Donegal County Council said it intended to seek approval for a Starter Homes scheme, initially in Letterkenny. The proposed scheme would need departmental approval before it could proceed.
The council was also examining the feasibility of providing serviced sites on council-owned land. Under the approach, suitable sites could potentially be made available to people who want to build their own homes.
These options were discussed following separate concerns raised by Councillor Gerry McMonagle about people who earn too much to qualify for social housing but cannot obtain a sufficient mortgage to buy privately.
The council also identified existing supports, including the First Home Scheme, Help to Buy and the Vacant Property Refurbishment Grant. Their suitability depends on individual circumstances and the requirements of each scheme.
The Starter Homes proposal and serviced-site option were still under consideration in the council’s April update. They should not be understood as homes or sites already available to applicants.
More than 1,300 homes in the pipeline
Donegal’s housing programme includes developments at different stages, from early planning to more advanced delivery.
In May 2026, reporting by RTÉ said Donegal County Council had 607 social housing units under construction across 30 sites, with plans for a further 1,355 units in its pipeline.
Those figures illustrate the scale of planned social housing delivery, but they are not a count of affordable homes available for purchase by first-time buyers. Social housing and affordable home ownership serve different groups and operate under different eligibility rules.
For households seeking to buy, the availability of homes at prices they can afford remains a separate consideration from the number of social housing units being built.
Can affordable housing close the gap?
Affordable purchase schemes and other supports can help eligible buyers, but they do not automatically resolve every affordability problem.
A household’s ability to buy depends on factors such as income, savings, property prices, mortgage approval and the terms of the scheme. The availability of suitable homes in the areas where people want to live also matters.
Serviced sites could provide another route for some households, particularly those able to arrange construction finance and build a home. However, access to land alone does not remove the costs of building, professional services, infrastructure and borrowing.
The effectiveness of any new measure will therefore depend on the homes or sites delivered, the eligibility rules and whether the overall costs are affordable for the households the schemes are intended to help.
The challenge facing first-time buyers in Donegal
The concerns raised by Harley point to a wider question for housing policy: how to support households who are not eligible for social housing but cannot make the transition into home ownership through the private market.
Donegal County Council has identified several possible routes, including the proposed Starter Homes scheme and the examination of serviced sites. The next steps will determine whether these proposals can progress and how many households they might assist.
For prospective buyers, the central issue is whether support translates into access to homes they can realistically afford.
Sources: Highland Radio, 26 October 2026;
