The Incremental Purchase Scheme from Mayo County Council

Incremental Tenant Purchase Scheme

In January 2016 a new Tenant (Incremental) Purchase scheme for the purchase of existing Local  Authority houses came into effect.

If you are a local authority tenant living in a local authority house, that is available for sale under the scheme and you meet the eligibility criteria, you can apply to purchase your house. Further information can be found here.

However, there are a number of types and uses of houses not eligible under the scheme, such as

Apartments, (a separate purchase scheme for apartments applies)
Houses that have been specifically designed for occupation by elderly persons
Houses that have been specifically designed in a group setting for occupation by members of the travelling community and
Houses in a private development transferred to the local authority by the developer

Rules

The person must be the tenant of the house to be sold by the housing authority and the house must not be excluded from sale under the scheme under Section 22 or Regulation 4 of the 2015 Regulations.
The tenant must have been in receipt of social housing supports for a minimum period of 10 years. In the case of applications from joint tenants, one of the tenants must be in receipt of social housing supports for a minimum of 10 years before qualifying.
The tenant must have a minimum reckonable annual income of €11,000 and this may include income derived from the State Pension, Widow's/Widower's/Surviving Civil Partner's pension, Blind Pension, Invalidity Pension and Disability Allowance. All other social welfare payments are to be regarded as secondary sources of income under the scheme.
You will pay the market value of the house – less a discount.
Depending on income, the discounts will vary between 40% and 60%.
Your local authority will also place a charge on your house called an ‘incremental purchase charge’. This charge will be equal to the discount you get on the price of the house.
The charge will remain in place for 20, 25 or 30 years (depending on the discount given).
Each year, the local authority will reduce the charge by 2%. At the end of the 20, 25 or 30 years, the charge will be zero as long as you obey the terms and conditions of the scheme.
You must live in the house as your normal place of residence and get agreement from your local authority if you want to sell, let or sub-let the house.
You will be able to resell your house at any time if your local authority agrees. However, if you sell before the end of the 20, 25 or 30 years, you will have to pay back the value of the outstanding charge on your house to your local authority.
Like all homeowners, you will be responsible for maintaining and carrying out repairs on your house from the date you buy it. You will also have to get and keep adequate property insurance on your house – and pay for this yourself.
The local authority can refuse to sell the house in particular circumstances such as to tenants or household members involved in anti-social behaviour or with rent arrears.
The Housing (Sale of Local Authority Houses) Regulations 2015, as amended by the Housing(Sale of Local authority houses)(Amendment)Regulations 2023, sets out the conditions for the sale of local authority houses.