Just 796 of applicants to loan scheme for first-time house buyers recommended for approval

The Housing Agency Last year disposed of eight sites for development of 357 homes in Dublin, Galway, Meath, Louth, and Kildare. 

Less than half of applicants to a Government-backed loan scheme for first-time buyers had their applications recommended for approval, the Housing Agency has said.

In its annual report, the agency said that of the 2,103 loan applications made to the Local Authority Home Loan scheme in 2023, just 796 were recommended for approval while the other 1,307 were either recommended for decline or returned invalid.

The scheme was established to help prospective homeowners, who may have already struggled applying through a bank, to get a mortgage.

Both Fianna Fáil and Fine Gael have pledged in their manifestos to retain the Local Authority Home Loan, with the latter saying it will ensure the maximum loan amount — currently €297,000 in Cork — will align with inflation.

An audit of the Housing Agency last year by the Comptroller and Auditor General said "no viable development options” had been identified for over three-dozen sites it had taken over for a scheme to build social homes.

In its annual report, the Housing Agency said it owns 69 sites and is aiming to “maximise housing development where appropriate”.

Last year, it disposed of eight of these sites for development of 357 homes in Dublin, Galway, Meath, Louth, and Kildare. A further four sites had planning permission granted for the development of 1,173 homes over the coming years, it said.

What's your view on this issue?

You can tell us here

Furthermore, three sites were utilised to provide 60 homes. Of these 42 were modular homes for short-term accommodation for Ukrainians.

Elsewhere, the Housing Agency’s spend on legal advice more than doubled to €927,954 last year, due to advice required for expanded housing programmes.

It also spent over €200,000 more on consultants classed as “other” which was “due to the inclusion of Defective Concrete Blocks Building Surveyors and Consultant Design Professionals fees”.