The new scheme will enable local authority tenants to purchase their own at a discount.
Fine Gael Dublin South Central TD, Catherine Byrne, welcomed the scheme, however she said she will be raising the purchase of flats and maisonettes with the Minister.
She said: "The new tenant purchase scheme will come into operation on the 1st of January 2016 and I encourage Local Authority tenants to consider it as a route to home ownership.
"The discount would be linked to the tenant's income and that of his or her spouse, and could amount to 40%, 50% or 60% of the purchase price. The period of the scheme is 20, 25 or 30 years, depending on the discount given to the tenant purchaser.
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"If the purchaser decides to sell the house during that period they will then pay the incremental purchase charge, which withers away to zero over the charge period. So if the tenant stays in the house for the full period, they avail of the full discount.
"The discounts available to the potential house purchaser will be higher under this new scheme than was previously the case. Under the old scheme, discounts were related to the length of tenancy rather than income.
"The new scheme, with its new incremental purchase model, means that the discounts are much higher than before and, because the discounts are income-related, they will enable tenants to purchase their homes earlier in their tenancies than was the case under previous schemes.
"This means that Local Authority tenants don't have to wait as long for the chance to buy their own home. It will also encourage tenant purchasers to remain in their dwellings for a reasonable length of time after purchase, thus fostering stable and sustainable communities.
"The scheme will be open to tenants or joint tenants who have been in receipt of social housing support for a minimum of at least a year, and who have a minimum reckonable income of at least €15,000 per annum.
"I am disappointed that flats and maisonettes are excluded from this scheme and will raise it with the Minister."
(CD/JP)
