'They will help first-time buyers and fresh start applicants' - 'key changes' to Leitrim Local Authority mortgages

It was confirmed this week that significant improvements to the Local Authority Home Loan and the Local Authority Purchase and Renovation Loan in Leitrim will go some way in helping people realise their dream of buying their own home.

Key changes for Sligo, Leitrim and Donegal under the revised scheme, are that the maximum eligible property price in Sligo, Leitrim and Donegal will increase to €310,000, up from the previous limit of €275,000. This adjustment better reflects current house prices in these counties and expands the range of homes that buyers can realistically consider. In addition, the single applicant income limit will rise from €70,000 to €80,000, allowing more individuals to qualify for a local authority-backed mortgage. The joint applicant income limit remains unchanged at €85,000.

Minister Marian Harkin said the changes will make a real and practical difference for prospective homeowners across Sligo, Leitrim and Donegal, where affordability remains a key barrier for many working individuals and families. “This is very positive news for people in Sligo, Leitrim and Donegal who are ready to buy a home but have been locked out of the market. By increasing both the house price ceilings and the income limits, the Government is recognising the reality of today’s housing market and responding in a meaningful way.”

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Minister Harkin added: “These increases are especially important in rural and regional areas. They will help first-time buyers and fresh start applicants who are in steady employment but have struggled to secure sufficient mortgage finance from commercial lenders.”

Supporting homeownership and rural communities, the Local Authority Home Loan, first introduced in 2022, and the Local Authority Purchase and Renovation Loan, launched in 2024, are designed to support creditworthy applicants who cannot access adequate bank finance. The purchase and renovation option is particularly relevant in counties such as Sligo, Leitrim and Donegal, where refurbishing vacant or derelict homes can play a vital role in revitalising towns and villages."

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Minister Harkin concluded: “These measures support not just individual buyers, but the long-term sustainability of our communities. Helping people to buy or renovate homes locally strengthens rural towns, keeps families rooted in their areas, and makes better use of existing housing stock."

The new limits will come into effect in Q2 2026.