Government Review Highlights Mismatch Between Affordable Housing Prices and Mortgage Limits
Dublin: A recent government review has confirmed a growing disconnect between the cost of homes included in local authority housing schemes and the mortgage limits set under state-backed loan programmes, sparking concern among prospective buyers.
The issue came to light following controversy over the pricing of homes in a new estate in County Kildare, where the starting price for three-bedroom houses is €370,000—exceeding the €360,000 cap under the Local Authority Home Loan scheme.
The scheme is designed to support first-time buyers and eligible applicants in purchasing or building new homes or buying second-hand properties, providing loans of up to 90% of the market value. The maximum loan amount, however, varies by region, and in Kildare, it currently falls short of covering available home prices.
Housing Minister James Browne acknowledged the pricing gap and confirmed that the government has received a report on the issue. He stated that efforts are underway to revise the mortgage limits where appropriate to better reflect current market conditions.
“It is not unexpected that property prices in certain areas are now exceeding the cap under the Local Authority Home Loan scheme,” Minister Browne said. “This is precisely why the Department of Housing has conducted a thorough review.”
He emphasised the government’s commitment to aligning mortgage support with market realities, ensuring that affordable housing initiatives remain accessible to those they are intended to help.
The minister also highlighted that the government is investing record levels of funding in housing and remains focused on enabling more individuals and families to secure homeownership.
“We will continue working to ensure that the pricing of homes in our affordable housing schemes corresponds with the mortgage options available, so that homeownership remains within reach for first-time buyers,” Browne added.
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