Government cuts tenant-in-situ funding to prioritise new social housing builds

Minister says capital must focus on new social homes as opposition warns of effective funding cut

The scheme, set up in 2023, allows local authorities to buy homes when tenants face homelessness because their landlord is selling. Picture: iStock

The Government is cutting funding for the tenant-in-situ scheme, as housing minister James Browne says he wants to redirect the money into building new social homes.

Mr Browne said he wants to “maximise” delivery of new builds, as opposition TDs criticise the decision to introduce tighter spending controls on councils.

“I want to focus our funding on the building of new social homes and getting people into social allocations,” Mr Browne said.

The scheme, set up in 2023, allows local authorities to buy homes when tenants face homelessness because their landlord is selling.

Following questions from Sinn Féin housing spokesperson Eoin Ó Broin, Mr Browne said the State provided more than 13,000 “housing solutions” in 2025, including new-build social homes and social allocations.

He contrasted this with the delivery of 700 second-hand social housing acquisitions in 2025, including tenant-in-situ purchases.

Mr Browne said he expects second-hand acquisitions to rise to around 1,000 in 2026.

“We want new builds, tenant in situ ultimately it is buying existing property using State capital. I want to maximise that to deliver new social homes for people,” Mr Browne said.

The minister recently announced a €373m budget for second-hand social housing acquisitions in 2026 to fund multiple schemes.

However, during a meeting of the Oireachtas Housing Committee, Mr Browne confirmed that €50m of that €373m was already announced in 2025 to help bring people out of long-term homelessness.

Mr Ó Broin argued that this €50m carryover amounts to a funding cut, leaving €323m available in 2026 compared with €375m allocated in 2025.

Policy changes also introduce ringfencing, with €150m earmarked to help people exit long-term homelessness and €50m for approved housing bodies to provide accommodation for older people, people with disabilities and care leavers.

In previous years, councils had flexibility in how they spent their allocations, but tenant-in-situ acquisitions will now be limited to €157m across all local authorities.

The Government has also restricted the scheme so councils cannot buy a property if a tenant has refused a “reasonable offer” of social housing from a council or approved housing body.

These measures follow restrictions introduced in 2025 that required local authorities to prioritise families with children, older people and people with disabilities.

Mr Browne said 2026 allocations exceed 2025 levels, noting that councils drew down only €290m for second-hand acquisitions last year.

However, Labour housing spokesperson Conor Sheehan said the gap between funding allocated and funding drawn down in 2025 “speaks volumes”.

“It shows how Government restrictions and design flaws prevented councils from accessing the full funding envelope. Announcing money is one thing. Making it usable in practice is another,” Mr Sheehan said.