For many people trying to buy their first home, the biggest difficulty is the gap between what they can afford to borrow and the price of a newly built property.
The Starter Home Purchase Scheme, formerly known as the Local Authority Affordable Purchase Scheme, is designed to help eligible households bridge that gap.
Under the scheme, local authorities can make newly built homes available at prices below their full market value. In return, the local authority retains an equity share in the property to reflect the support provided.
The scheme is available through participating local authorities, but the homes, prices, application periods and specific conditions can vary from one development and council to another.
What is the Starter Home Purchase Scheme?
The Starter Home Purchase Scheme is a form of affordable home ownership support provided through local authorities.
It is intended for households who may be able to afford a mortgage and deposit but cannot afford to purchase a qualifying new home at its full market value.
Instead of requiring the buyer to finance the entire market value, the local authority can provide support through an equity arrangement.
The buyer purchases the property while the local authority retains an equity interest representing part of the difference between the property’s market value and the amount the buyer is required to pay.
This can reduce the initial purchase price and make a newly built home more accessible to qualifying households.
How does the equity share work?
The local authority’s contribution is not simply a discount that disappears after the purchase.
An equity share is retained in the property.
For example, if a property has a market value of €350,000 but an eligible buyer purchases it for €280,000 through an affordable purchase arrangement, the difference is reflected in the local authority’s equity interest, subject to the terms of the particular scheme.
The precise calculation depends on the property, the buyer’s circumstances and the relevant local authority’s rules.
The homeowner can generally redeem the equity share, either partly or in full, subject to the terms of the scheme.
Certain circumstances can also trigger a requirement for the equity to be redeemed.
Buyers should therefore understand the equity arrangement before purchasing a home rather than looking only at the initial purchase price.
How is the affordable purchase price calculated?
The amount a household can afford is assessed using its financial circumstances.
Depending on the scheme and local authority, this can include:
- Household income
- Mortgage borrowing capacity
- Available savings
- The required deposit
- Other relevant financial resources
The buyer must still demonstrate that they can afford the required purchase price.
The scheme is therefore not intended to replace the buyer’s mortgage or deposit. Instead, it is designed to help bridge the remaining gap between the household’s purchasing capacity and the market value of the home.
Can Help to Buy be used?
Depending on the property and the buyer’s circumstances, Help to Buy may form part of the funding available to an eligible purchaser.
However, buyers should check the specific conditions applying to the property and confirm how the different supports can be combined before making financial commitments.
The availability and rules of government schemes can change, so applicants should always check the current official requirements.
Who can apply?
Eligibility depends on the applicable affordable purchase scheme and the local authority offering the property.
Applicants generally need to satisfy financial and housing-related conditions and demonstrate that they have the capacity to purchase the property with the assistance provided.
Some developments can also have additional requirements relating to first-time buyer status, household circumstances, local authority criteria or the type of property being offered.
Being interested in an affordable home does not automatically mean that an applicant will qualify.
Each property release should therefore be checked against the current eligibility rules published by the relevant local authority.
Why the scheme matters to first-time buyers
The scheme is aimed at a problem faced by many households: they may have sufficient income to support a mortgage but still cannot borrow enough to purchase a newly built home at its full market value.
House prices, mortgage lending limits and deposit requirements can leave a significant gap.
The affordable purchase model attempts to address that gap by reducing the initial amount the buyer has to pay while allowing the local authority to retain an equity interest.
For a qualifying household, this can bring a property within reach that might otherwise be unaffordable.
However, the lower initial purchase price should not be considered in isolation. Buyers also need to understand their mortgage repayments, service charges where applicable, household costs and the future implications of the local authority’s equity share.
Affordable homes vary between local authorities
The Starter Home Purchase Scheme does not mean that every affordable home is offered at the same price or under identical conditions.
Local authorities can have different developments, property types, prices, application dates and eligibility requirements.
For example, Fingal County Council’s Affordable Housing programme explains that the purchase price of qualifying homes is linked to the applicant’s financial capacity, while the council retains an equity share.
Other local authorities may publish their own information and application procedures for individual developments.
Applicants should therefore rely on the official information for the specific property they are applying for rather than assuming that the terms of one development apply everywhere.
What happens when a new development opens?
When an affordable housing development is launched, the local authority normally publishes information about the available properties, prices, eligibility requirements and application period.
Applicants may need to provide information about their household, income, mortgage approval or capacity, savings and other financial circumstances.
The council then assesses applications against the relevant criteria.
Demand can be significantly higher than the number of homes available, so meeting the basic eligibility requirements does not necessarily guarantee that an applicant will receive a property.
The exact allocation process depends on the rules applying to the particular development.
Oscar Traynor Woods: a current example
The Starter Home Purchase Scheme can be seen in practice at Oscar Traynor Woods in Coolock, where Dublin City Council opened applications in September 2026 for its final 95 Starter Homes.
The homes comprise 28 one-bedroom, 48 two-bedroom and 19 three-bedroom apartments, with prices starting at €251,000.
Dublin City Council says the homes are being offered at an average discount of 22% compared with their open-market value.
Oscar Traynor Woods is part of a much larger mixed-tenure development planned to provide 850 homes, including social, cost-rental and Starter Home Purchase Scheme properties.
The example demonstrates why buyers need to examine the details of each individual development. The prices, property types and application conditions can differ from one affordable housing release to another.
What buyers should consider before applying
An affordable purchase price does not necessarily mean that buying the property will be financially easy.
Before applying, prospective buyers should consider:
Mortgage affordability: How much can you actually borrow, and what will the monthly repayments be?
Deposit: Do you have enough savings to meet the required deposit?
Other costs: Have you allowed for legal fees, insurance, moving costs, management or service charges and other household expenses?
Equity share: How much equity will the local authority retain, and what are the rules governing redemption?
Future circumstances: What happens if you sell the property, move home or otherwise trigger an event covered by the scheme’s conditions?
Eligibility: Do you meet the requirements for the specific property and local authority?
These questions are important because the initial purchase price is only one part of the overall cost of home ownership.
Where can buyers find affordable purchase opportunities?
People interested in the scheme should check the affordable housing pages of their local authority and official government housing information.
Individual developments are normally advertised separately, with details of the available properties, prices, application dates and eligibility requirements.
Buyers should also be cautious about relying on outdated information shared online. Affordable housing schemes and individual developments can have limited application windows, and rules can change.
The bottom line
The Starter Home Purchase Scheme is designed to help eligible households bridge the financial gap between what they can afford and the market value of a newly built home.
The assistance can make home ownership possible for some households that would otherwise struggle to buy at full market value.
But the arrangement involves an equity interest for the local authority, meaning buyers should understand the long-term financial implications as well as the initial purchase price.
For anyone considering an affordable home, the key is to look beyond the headline price and examine the mortgage, deposit, eligibility requirements and equity arrangement attached to the specific property.
Information about individual affordable housing developments can change. Applicants should check the current terms, eligibility requirements and application information published by the relevant local authority before applying.
