Government Housing Schemes and Grants in Ireland: 2026 Update
Tea & Mortgage Podcast
What's New in Government Housing Schemes for 2026
If you’re trying to make sense of the government housing schemes and grants available to Irish buyers in 2026, you’re not alone, it’s one of the most-asked questions John Coleman of JC Mortgages hears. In this episode of Tea & Mortgage Podcast, John and host Norm Schriever walk through the major government house scheme’s currently running: what’s changed, what’s stayed the same and the misunderstandings that can trip up first-time buyers.
The conversation covers several property schemes open to buyers this year, the Help to Buy tax refund, the equity-based First Home Scheme, the council-run Local Authority Affordable Purchase Scheme and the Vacant Property Refurbishment Grant for derelict or long-vacant homes. Together, these make up the bulk of the government house grants and government property grants currently available and this guide sets out exactly how each one works, who it suits, and where buyers most often get caught out.
Key Takeaways
| Help to Buy (HTB) refunds up to four years of Income Tax/DIRT, capped at a €500,000 property valuation but you must borrow at least 70% loan-to-value to qualify. | |
| First Home Scheme (FHS) isn't free money, the scheme takes an equity stake (up to 30% or 20% if stacked with HTB) that you eventually pay back based on the property's market value at the time. | |
| Local Authority Affordable Purchase Scheme sells council-allocated new homes at a discount in exchange for an equity stake but availability is limited and demand is high. | |
| Local Authority Affordable Purchase Scheme sells council-allocated new homes at a discount in exchange for an equity stake but availability is limited and demand is high. | |
| The Vacant Property Refurbishment Grant is paid out after works are completed, banks won't lend against it upfront, so you need your own funds or borrowing capacity in place first. |
Tea & Mortgage podcast: House schemes & grants
Government House Schemes at a glance
| Scheme | How it helps | Property cap | Repayment |
|---|---|---|---|
| Help to Buy | Tax refund (4 yrs Income Tax / DIRT) | €500,000 | None — refund, not a loan |
| First Home Scheme | Equity stake, up to 30% (20% with HTB) | Regional caps, up to €500,000 | Pay back % of market value on sale / buy-out |
| Local Authority Affordable Purchase | Discount on council-allocated new homes | Set per development | Pay back council's equity % on sale / buy-out |
| Vacant Property Refurbishment Grant | Post-completion grant for vacant/derelict homes | N/A - grant, not price-capped | None - but not usable upfront |
The Help to Buy (HTB) Scheme: Rules, Tax Refunds and Cap Limits
Of all the government house grants on offer, Help to Buy is the most straightforward. It refunds the Income Tax and DIRT you’ve paid over the previous four tax years, as of this recording in July 2026, that means 2022, 2023, 2024 and 2025.
- Property type: Available only for new-build homes or self-builds, not second-hand properties.
- Price ceiling: The maximum property valuation is €500,000. That cap hasn’t moved in roughly five years, which has quietly eroded the scheme’s value as new-build prices have climbed, particularly in Dublin.
- 70% loan-to-value (LTV) requirement: You must borrow at least 70% of the purchase price from your mortgage lender. On a €500,000 home, that means borrowing at least €350,000. Bring a larger deposit and borrow less than 70% and Revenue’s view is that you don’t need state support so you lose eligibility entirely.
Key Tips
- Check your borrowing percentage before you commit extra deposit savings, over-saving can actually disqualify you from Help to Buy.
- Remember HTB only applies to new builds or self-builds; it’s not an option for second-hand homes.
- The €500,000 cap hasn’t risen with new-build prices, so confirm early whether your target property will actually qualify.
The First Home Scheme (FHS): Equity Stakes, Repayments and Price Caps
The First Home Scheme works completely differently to Help to Buy: it isn’t a refund, it’s an equity partner. The scheme takes a stake in your property, as little as 2% or as much as 30%, in exchange for closing the gap between what your bank will lend and the purchase price.
If you’re also using Help to Buy, the maximum FHS contribution drops to 20%. For example, on a €500,000 home with €30,000 coming from Help to Buy, the First Home Scheme could contribute up to €100,000 (20%) to make up the rest.
- Years 1–5: No repayments are due, but the scheme still owns its full equity percentage of the home throughout this period.
- Year 6 onward: A service charge begins, small in Year 6, increasing gradually to cover what you still owe.
- Repayment basis: You don’t repay a fixed euro amount. You repay the scheme’s percentage stake based on the property’s market value at the time you sell or buy it out, which cuts both ways if prices fall, but typically means paying back more in cash terms if your home has gained value.
The scheme also can’t be allocated to specific rooms or areas of the home (however tempting that idea might be), the equity stake applies to the entire property’s value and the scheme’s interest is recorded as a legal equity charge against the whole home, not a portion of it.
One further restriction: you cannot combine a Central Bank salary/income exception with the First Home Scheme. Borrowing is strictly limited to standard lending rules (typically four times gross income) if FHS equity is involved.
Regional Price Cap Updates for 2026
The First Home Scheme uses regional property price ceilings and these have recently been updated:
- Dublin: The cap has risen to €500,000, now aligned with the Help to Buy limit (previously €475,000).
- Cork, Galway and Limerick: Maintain higher ceilings relative to rural counties.
- Other counties: Each local authority area sets its own cap based on local market conditions.
Key callouts
- Treat the First Home Scheme as a long-term financial partner, not free deposit money, plan for the Year 6+ service charge from day one.
- You’ll owe a percentage of market value, not a fixed sum, factor rising property prices into your repayment planning.
- Check your county’s specific price cap; Dublin’s has changed and other regions differ significantly.
- If you’re using FHS, don’t expect to qualify for a Central Bank salary exception on top of it.
Local Authority Affordable Purchase Scheme: How Discounts and LTV* Rates Work
This scheme is conceptually similar to the First Home Scheme, but it’s run through local county councils rather than nationally. Councils designate a percentage of units in new developments as “affordable housing”, and eligible buyers apply directly through the local authority instead of buying through an estate agent.
- The discount: A home valued at €500,000 might be sold to an eligible buyer at €400,000.
- Equity stake: In return, the council retains an equity percentage (e.g. 20%) in the property. Unlike the First Home Scheme, there’s no annual service charge from Year 6 but you still repay the council’s stake based on market value when you sell or buy them out.
- Availability: Because allocation is limited to designated units, demand routinely outstrips supply, getting one of these homes can feel like winning a lottery compared to the more broadly available First Home Scheme.
Key tips
- Watch how your bank prices your interest rate, some lenders calculate LTV bands off the discounted price rather than the true market value, landing you in a higher rate band than you’d expect.
- Register interest with your local council early; allocation is limited and competitive.
- Compare the no-service-charge structure against the First Home Scheme’s Year 6+ charges to see which suits your long-term plans better.
Scheme Stacking: Combining Help to Buy and the First Home Scheme
Buyers can combine Help to Buy and the First Home Scheme but the 70% loan-to-value rule governs everything.
- To use both schemes, you must borrow at least 70% of the purchase price from your mortgage lender.
- If your bank approval falls below 70% (say your income only stretches to 65%), you lose Help to Buy eligibility entirely, though you can still use the First Home Scheme alone, for up to 30% equity.
The “No Exceptions” Rule
Lenders are strictly prohibited from granting a Central Bank income exception on any mortgage backed by First Home Scheme equity. You’re restricted to standard lending limits, typically four times gross income, with no flexibility on this point.
Key tips
- Confirm your likely borrowing percentage with a broker before assuming you can stack both schemes.
- A shortfall below 70% LTV doesn’t block you entirely, it just removes Help to Buy from the mix.
- Don’t count on an income exception if First Home Scheme equity is part of your funding plan.
Vacant Property Refurbishment Grants and Derelict Homes
For buyers looking at second-hand properties, the Vacant Property Refurbishment Grant is one of the more commonly asked-about new grants and schemes, aimed at homes that have been vacant or derelict for two years or more.
The critical point from a mortgage underwriting perspective: banks do not count grant money toward your initial purchase or repair funds.
- If a property is unlivable or needs major works, the bank will require a structural survey and formal costs before lending.
- You must prove you have the cash savings or borrowing capacity to fund the work upfront.
- The grant is paid out after completion, it’s a financial bonus afterwards, not something a bank will lend against in advance.
Key tips
- Line up a structural survey and formal costings early if you’re eyeing a derelict or long-vacant property.
- Have your own funding or borrowing capacity confirmed before assuming the grant will bridge any shortfall.
- Treat the grant as a reimbursement, not a funding source your bank will recognise upfront.
Guidance and Closing Thoughts
Navigating government housing schemes and grants isn’t just about picking the right one, it’s about understanding the long-term commitment each carries. As John puts it, the goal isn’t only securing mortgage approval, but guiding buyers through the entire process to the keys of their home: mapping out the roadmap, avoiding traps like the 70% LTV rule, and making sure every decision is made with full information.
Key callouts
- Every scheme trades short-term help for a long-term obligation, read the fine print on repayment before you commit.
- Speak to a mortgage advisor early; scheme eligibility can shape which properties are realistically within reach.
- Keep an eye on new grants and schemes announcements each year, caps and rules are regularly revised.
Frequently asked questions
Most government house schemes target first-time buyers, but some, including the First Home Scheme, also cover a defined "fresh start" category, for example, people who are divorced, separated or have been through personal insolvency and no longer have a financial interest in a home. Eligibility rules vary by scheme, so it's worth checking rather than assuming you're excluded.
It varies. Help to Buy is usually processed quickly online through Revenue once mortgage approval is in place. The First Home Scheme and Local Authority Affordable Purchase Scheme can take longer, involving separate applications, income assessments, and sometimes allocation waiting lists, so build extra time into your house-hunting plan.
Generally yes, but the grants operate independently of your mortgage approval rather than alongside it. Since banks won't count a refurbishment grant toward your available funds upfront, you still need to fund the purchase and works privately first, with the grant reimbursed afterwards.
Yes. Help to Buy applies nationwide under the same €500,000 cap. The First Home Scheme and Local Authority Affordable Purchase Scheme use regional price ceilings, so every county has its own cap based on local conditions, typically lower outside the main cities.
At minimum: proof of identity, PPS number, recent payslips or accounts, mortgage approval in principle, tax compliance details for Revenue-linked schemes like Help to Buy, and for local authority schemes evidence of income thresholds and eligibility status. A mortgage advisor can confirm the exact list for your scheme.
Not sure which scheme fits your situation?
John Coleman and the team at JC Mortgages help buyers map out exactly which government housing schemes and grants they qualify for and how to avoid the traps covered in this podcast.
Tea & Mortgage Podcast “2026 Government Home Buying Schemes and Grants,” the information is current as of July 2026; scheme rules, caps and eligibility criteria are subject to change.