What are my housing options?

(JJ Hurley)

For those trying to get on the property ladder or indeed rent a property, this article outlines some of the options open to you

As house prices continue to spiral, with the national average cost of a home heading towards €385,000, we look at the options available to renters and prospective homeowners.

Traditionally, for many struggling to secure a mortgage the local authority and the provision of social housing to rent was always the first option.

For anyone thinking of pursuing this route the first step is to register with the local authority.

If you live in the county Cork, then you need to contact the local authority at County Hall.

Here’s a link that will guide you in the procedures into this process: www.corkcoco.ie/en/resident/housing/how-do-i-apply.

Currently, there are two schemes available: Rental Accommodation Scheme (RAS) and Housing Assistance Payment (HAP).

The schemes work as follows: RAS sees the local authorities pay landlords directly for medium-to-long-term, while tenants pay a differential rent to the council. In the case of HAP, local authorities make a monthly rental payment on your behalf to your landlord, subject to terms and conditions, including rent limits. In return, the HAP tenant pays a weekly contribution towards the rent to the local authority.

While the schemes are very similar, they have a marked division in their operation: under HAP, tenants find their own accommodation, while under RAS, the local authority usually sources the property, often for those on long-term rent supplement.

It should be noted that, in each case, income eligibility thresholds will apply.

For those outside the income eligibility thresholds, there is another scheme: the Cost Rental Scheme.

This scheme is designed for those who may not qualify for social housing but cannot afford private rents.

Applicants often need to meet income criteria, which are higher than social housing thresholds but capped to keep rents affordable.

Tenants get a long-term lease, often similar to a private rental but more secure.

www.corkcoco.ie/en/resident/housing/cost-rental-schemes

For those looking to buy a home but unable to secure a mortgage through the traditional route, there are two schemes worth pursuing: the Affordable Housing Scheme and the Help to Buy Scheme.

Under the Affordable Housing Scheme, the local authority provides assistance to those on moderate incomes to buy new homes at reduced prices.

The scheme is designed to help you bridge the gap between what you can currently afford and the price of your new home.

Eligible applicants must purchase as much of the property as they can, using a mortgage and their deposit, subject to the set minimum price of each house. Cork City Council then takes a percentage equity stake in your home.

For example, if a successful applicant purchases 85% of their home, Cork City Council will take a 15% equity interest in the property.

The Irish Help to Buy (HTB) scheme is a government incentive assisting first-time buyers with their deposit for a new-build or self-build home by providing a tax refund of up to €30,000.

For more information, log on to: www.corkcoco.ie/en/resident/housing/affordable-housing