Local Authority Home Loan Limits Set to Increase by Up to €55,000

The Irish Cabinet is set to consider a proposal today from Housing Minister James Browne to raise the limits for the local authority home loan scheme. This change aims to better align with the current housing market, where prices have surged since the last assessment in March 2023. The local authority home loan scheme, which launched in January 2022, assists first-time buyers and “fresh-start” applicants who struggle to secure adequate financing from commercial banks.

As of September 2025, national average house prices have increased by 21%. In Dublin, the rise stands at 18.32%, while other regions have experienced an even steeper climb, with prices outside Dublin up by 23.23%. The proposed adjustments would mark the first significant review of loan amounts since early 2023.

Under the new plan, the maximum loan limit in Dún Laoghaire-Rathdown, South Dublin, Dublin City, Fingal, Wicklow, and Kildare would increase by €55,000, raising the limit from €360,000 to €415,000. In Cork City, Cork County, Galway City, and Meath, the limits would rise by €45,000 to €375,000. Similarly, Clare, Kilkenny, Limerick, Waterford, Westmeath, and Wexford will also see a €45,000 increase. Other regions, such as Galway County and Louth, will experience a smaller increase of €15,000, raising the maximum loan to €345,000.

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

In tandem with these adjustments, the income limits will also be revised. For single-income earners, the maximum threshold will rise from €70,000 to €80,000, while the limit for couples will remain at €85,000. The proposed measures are anticipated to be implemented in the coming months.

Minister Browne has expressed his frustration over the low uptake of the local authority home loan scheme, indicating that many single buyers feel excluded from the housing market. He regards this situation as “deeply unfair” given the competition with couples for available properties. Officials have acknowledged the need to balance increasing loan limits with potential impacts on market prices.

In addition to housing discussions, other cabinet members will address various topics. Higher Education Minister James Lawless will report on the success of Path 4, an initiative aimed at supporting students with intellectual disabilities. This programme has exceeded targets for enrollment, with 193 students currently participating across 11 institutions.

Health Minister Jennifer Carroll MacNeill will present Ireland’s first national strategy for the responsible use of artificial intelligence in health and social care. This initiative, known as AI for Care, aims to foster innovation and create specialized roles in data science, clinical AI leadership, and cybersecurity.

Lastly, Sports Minister Patrick O’Donovan will provide updates on the upcoming Ryder Cup at Adare Manor, Limerick, and the Media Regulation Bill, which seeks to enhance transparency in media ownership and streamline decisions regarding media takeovers to an independent body.

These discussions reflect the Cabinet’s ongoing efforts to address various pressing issues in Ireland, from housing affordability to educational support and technological advancements in health care.