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For Written Answer on : 12/07/2022
Question Number(s): 420 Question Reference(s): 37580/22
Department: Housing, Local Government and Heritage
Asked by: David Stanton T.D.


To ask the Minister for Housing; Local Government and Heritage if he has given consideration to granting eligibility under the Fresh Start principle to the local authority home loan scheme to applicants in cases in which a relationship had existed and has ended but who had not been married and in cases on which they no longer retain a beneficial interest in a home; and if he will make a statement on the matter.


The Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.

A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan to the following categories of persons:

  • Applicant(s) that previously purchased or built a residential property, but is divorced/separated or otherwise and has left the property and divested themselves of their interest in the property are eligible. Where a couple was in a relationship but not married, and the relationship has ended, the Fresh Start Principle can apply.
  • Applicant(s) that previously purchased a residential property, but have been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. The applicant must be discharged from bankruptcy proceedings. It should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment.

The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis.

Further details can be found on