Buying a home in Ireland has become increasingly challenging in recent years, particularly for first-time buyers facing rising prices and limited supply. To help more people take their first step onto the property ladder, the Government introduced various shared ownership and shared equity schemes designed to make buying a home more affordable.
These schemes can appear similar at first glance, but they operate in different ways and have distinct legal implications. This article explains the options currently available and highlights the key points buyers need to understand.
Understanding the terminology
Before looking at the current schemes, it helps to understand the difference between shared ownership and shared equity, as these terms are sometimes used interchangeably.
Shared ownership traditionally referred to arrangements where a buyer purchased part of a property and paid rent on the remaining portion owned by a local authority or housing body. The buyer could later purchase further shares until they owned the property outright.
Shared equity, on the other hand, means that another party – usually the State or a local authority – takes an equity stake in your home. This reduces the amount you need to borrow initially. The equity share is repaid when certain events occur, such as selling the property, refinancing, or buying out the Government’s or council’s stake over time.
In Ireland, the active schemes currently available are shared equity arrangements.
Current shared equity options (as of 2025)
First Home Scheme (FHS)
Overview
This is a national shared-equity scheme designed to help eligible buyers purchase a newly-built home or build their own home on their own site.
How it works
The scheme provides an equity facility of up to 30% of the purchase price (or building cost) in return for the scheme taking an equivalent stake in the property.
Eligibility
Key criteria include being over 18, being a first-time buyer (or qualifying under “Fresh Start” rules), securing mortgage approval with a participating lender, and having a minimum deposit.
Legal/Conveyancing Considerations
The stake means that when the property value changes, the amount needed to redeem the equity stake will change too. For example, if your property value increases, your redemption amount increases proportionally.
Local Authority Affordable Purchase Scheme
Overview
Local authorities make newly built homes available at a reduced price for eligible buyers, and the authority retains an equity share corresponding to that discount.
How it works
If you buy a home under this scheme, the price is discounted, and the local authority holds a matching equity share. Later, on sale or other trigger events, the local authority’s share may need to be settled.
Eligibility
Must be over 18, a first-time buyer (or eligible under Fresh Start), with a right to reside in Ireland. The home must be intended as your principal residence.
Legal/Conveyancing Considerations
The agreement will often include a contract or charge in favour of the local authority. Buyers should check what happens on resale, how the equity share is calculated, and any future obligations or restrictions.
Incremental Tenant Purchase Scheme
Overview
This scheme is aimed at tenants of local authorities who wish to purchase the property they are living in, often newly-built or transferred properties.
How it works
The local authority grants a purchase opportunity at a discounted rate; in return, the authority retains a “charge” which reduces over time.
Eligibility
You must already be a tenant of the local authority; criteria vary by authority.
Legal/Conveyancing Considerations
Because the local authority retains a charge, details such as the rate of reduction, conditions on resale, and any future clawback must be clearly understood and documented by your solicitor.
What’s no longer available
Shared Ownership Scheme (1991–2011)
The Shared Ownership Scheme operated in Ireland from 1991 until its closure to new applicants in 2011. Under this arrangement, buyers purchased a share (often 40% to 60%) of a property from a local authority and paid rent on the remainder.
When the scheme closed, existing shared ownership agreements remained in place under their original terms. Participants could continue to “staircase” (buy out additional shares) or sell the property in line with their contracts. However, no new applicants were accepted after 2011.
The scheme was phased out primarily due to concerns about affordability, complexity, and long-term sustainability. Rising property values and repayment structures left some buyers struggling with combined rent and mortgage costs. As a result, the Government replaced it with clearer and more financially stable shared equity models, such as the First Home Scheme.
Legal considerations and your solicitor’s role
Buying a property through a shared equity arrangement involves additional legal steps compared with a standard conveyance. Because another party holds an equity stake or charge over the property, your solicitor must review and explain how this affects your ownership and future obligations.
Key legal checks typically include:
- Understanding the equity agreement or charging order – Your solicitor will examine the shared equity or affordable purchase agreement to confirm the conditions under which the authority’s or scheme’s interest is created, maintained, and eventually redeemed.
- Confirming lender consent and mortgage conditions – Since a second charge is often registered against the property, your lender must consent to the arrangement. Your solicitor ensures that the lender and the scheme provider’s requirements are satisfied before completion.
- Redemption procedures and future resale implications – Your solicitor will clarify what happens when you sell, refinance, or repay the equity share. This includes confirming how the equity percentage is calculated on redemption and any restrictions on resale or remortgaging.
- Ensuring long-term understanding and compliance – Finally, your solicitor’s role is to ensure you fully understand the implications of owning a property under shared equity, particularly how changes in property value affect repayment and how your obligations continue until the equity share is fully redeemed.
Require assistance with a shared equity property purchase?
Purchasing a home through a shared equity scheme can be an excellent way to make home ownership more achievable, but it also introduces unique legal and financial considerations. The conveyancing team at McCarthy + Co Solicitors LLP has extensive experience advising clients on shared equity and affordable purchase arrangements. If you’re buying a property under one of these schemes, our team can guide you through the legal steps and ensure you understand your rights, obligations, and long-term commitments. Arrange a consultation using our quick and confidential online form.
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