Local authority home loan scheme to rise by up to €55,000 under new Cabinet plans

Proposed increases of up to €55,000 aim to reflect rising property prices and support first-time and fresh-start buyers

It is understood that housing minister James Browne was “frustrated” that more people were not drawing down the local authority home loan. File picture

Cabinet will consider plans from housing minister James Browne today to increase the limits for the local authority home loan scheme to align with current house prices.

The local authority home loan was launched in January 2022, and the purchase and renovation loan was launched in July 2024 to support creditworthy “first-time buyers” and “fresh-start” applicants unable to get sufficient funding from commercial banks to buy a home or renovate a vacant or derelict property eligible for the vacant property refurbishment grant.

This will be the first time that house prices and income limits have been examined since March 2023.

As of September 2025, house prices have increased nationally by an average of 21%. Prices in Dublin have risen by 18.32%. Prices everywhere else in the country rose by 23.23%.

In November 2025, the department completed an updated review of house prices and income limits.

Mr Browne will seek approval to increase loan rates in Dún Laoghaire-Rathdown, South Dublin, Dublin City, Fingal, Wicklow, and Kildare by €55,000 from €360,000 to €415,000.

Cork City, Cork county, Galway City, and Meath will rise by €45,000 to €375,000.

There will be a €45,000 increase to the maximum loan available in Clare, Kilkenny, Limerick, Waterford, Westmeath, and Wexford.

A €15,000 rise in Galway county and Louth will make the maximum loan available €345,000.

Meanwhile, in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo, and Tipperary, maximum loans will increase from €275,000 to €310,000.

The income limit for a single-income earner will increase from €70,000 to €80,000, but will remain at €85,000 for couples. It is expected that these changes will be implemented in the coming months.

It is understood that Mr Browne was “frustrated” that more people were not drawing down the local authority home loan.

He also expressed concerns about single buyers who are often “locked out of options” when they are in competition with couples, something the housing minister is understood to regard as “deeply unfair”.

Sources stated that a “careful balance” must be struck as increasing home loan limits can also impact market prices.

Higher education minister James Lawless will update ministers on the success of Path 4, Ireland’s national programme for students with intellectual disabilities.

The courses help students with intellectual disabilities build independence, life skills, and work readiness, with supported work placements and accredited learning.

The second phase of the scheme has enrolled 193 students across 11 higher education institutions. This is above the 160 targets.

Mr Lawless will confirm to Cabinet that funding for Path 4’s phase two courses will continue into 2026/27 and 2027/28.

Health minister Jennifer Carroll MacNeill will bring a memo on Ireland’s first national strategy for the safe, responsible, and effective use of artificial intelligence (AI) across health and social care.

AI for Care will drive innovation and grow specialist roles in data science, clinical AI leadership, cybersecurity, and analytics, and strengthen Ireland’s medtech and digital health sectors.

Sports minister Patrick O’Donovan will update ministers on the Ryder Cup at Adare Manor, Limerick, as well as the Media Regulation Bill.

This bill will ensure that media companies are open about who owns them, as well as moving the decision about media takeovers away from the minister to an independent body.

• Louise Burne is Political Correspondent.