Government to cut funds for tenant in situ scheme

The Government has argued the scheme should be used as a last resort, but in 2025, councils across the country were forced to stop accepting new applications because a lack of funding was preventing purchases.

The Government is to begin cutting funding to its tenant in situ scheme, with housing minister James Browne concerned about councils being over-reliant on the programme.

The scheme, set up in 2023, allows local authorities to buy houses in cases where tenants are at risk of homelessness when their landlord is selling up.

However, government figures are concerned that local authorities are too reliant on acquiring homes instead of directly building new properties.

“Council dependence on the tenant in situ scheme is far too high,” said a Government source, who insisted the scheme was designed as a temporary measure.

"There has to be a tightening to reduce the reliance."

The Government has argued the scheme should be used as a last resort, but in 2025, councils across the country were forced to stop accepting new applications because a lack of funding was preventing purchases.

The scheme was rolled out as part of a wider local authority social housing expansion project, which also includes vacant property acquisitions.

In 2025, there was a total of €325m allocated to second hand acquisitions by the Department of Housing, but in 2024, the Government provided an acquisition target of 1,500 homes for Tenant in Situ rather than a capped funding allocation.

Sinn Féin’s housing spokesperson, Eoin Ó Broin, said cuts to the scheme should not be introduced.

“The minister must restore and where needed increase the funding for social housing acquisitions to 2024 levels,” he said.

He must remove the restrictions that he introduced last year and he must allow councils the maximum flexibility and funding to prevent more single people and families with children from becoming homeless.

Mr Ó Broin’s criticism of the proposed cuts come as Sinn Féin received data from several local authorities showing a sharp fall in the number of houses purchased through Tenant in Situ.

In Dublin city, 259 properties were acquired by the local authority in 2024, but this fell to 71 in 2025.

In Dun Laoghaire, 46 houses were bought by the council through the tenant in situ scheme in 2024. However, this reduced to two in 2025.

There is also a sharp drop in Fingal, from 131 in 2024 to 36 in 2025.

Mr Ó Broin cited the change in allocation for second hand acquisitions in Dublin City, which fell from €115.8m in 2024 to €38m in 2025.

“As a direct consequence of these cuts more people became homeless, and more adults and children ended up in emergency accommodation,” he said.

The expected cuts to the scheme come as Mr Browne announced an expansion to the buy and renew scheme, which allows local authorities to acquire and refurbish long-term vacant and derelict properties.

The change will allow contractors to buy and refurbish vacant and derelict properties and then sell them on to local authorities or affordable housing bodies, provided they reach an agreement in advance of works starting.

Mr Browne said bringing “long term derelict buildings back into productive use is one of the most effective ways of increasing supply as well as revitalising communities in our towns and cities”.