More Kerry people set to secure their forever homes as local authority loan scheme expands

By Alastair Tibbs, The Kerryman

Kerry’s local authority mortgage scheme is set to receive a “very positive” boost this year following a period of rapid housing price increases.

The maximum eligible property price will be increased by €35,000 to €310,000 in Q2 of this year, helping more people in Kerry to become homeowners.

The Local Authority Home Loan was launched in 2022 with the goal of supporting creditworthy first-time buyers who are unable to get sufficient finance from commercial banks.

Since 2018 over 4,300 people have managed to buy their own home through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.

Kerry TD Michael Cahill welcomed the announcement, calling it a “progressive and timely” move that “reflects the reality” of the market.

“Increasing the property price ceiling to €310,000 in Kerry will make the Local Authority Home Loan a far more realistic option for many first-time buyers across the county,” he said.

The income limit for single applicants will also be increased from €70,000 to €80,000, allowing more people to qualify for the loan.

The changes will also bolster the Local Authority Purchase and Renovation Loan, which couples the Local Authority Home Loan with the Vacant Property Refurbishment Grant.

This allows the financing of the purchase of a derelict property along with a loan of up to €50,000 to provide for the renovation of the site.

“The expansion of the Purchase and Renovation Loan, along with the bridging finance linked to the Vacant Property Refurbishment Grant, is a strong incentive to bring vacant and derelict properties back into use,” said Deputy Cahill.

“That is especially important in towns and villages across Kerry where we want to see regeneration and sustainable growth.”

“These enhancements show the government is listening and responding to market conditions.”

Kerry senator Michael Kennelly said he was “delighted” by the changes, advising prospective first-time buyers in Kerry to apply.

“Increasing the property price ceilings and the single income limit will help more people get a mortgage and start their journey to homeownership,” he said.

“I would encourage people in Kerry looking to buy their own home to look into if they are eligible for the Local Authority Home Loan and the Local Authority Purchase and Renovation loan.

“Fine Gael is committed to ensuring people have a wide variety of options to buy their own home.”