A new-look Local Authority Home Loan scheme has taken effect in Ireland from today, 04 January.

Announced by Housing Minister Darragh O'Brien, the scheme aims to support access to homeownership for creditworthy homebuyers who otherwise find it difficult to access sufficient finance.

Minister O'Brien was joined by Public Expenditure and Reform Minister Michael McGrath to officially sign the regulations.

"The new regulations will make it easier for single people to avail of a State backed mortgage for a new, second-hand or self-build home," said Minister O'Brien. "A 'Fresh Start' principle also applies which means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply also.

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"I am now raising the income ceiling for a single applicant by €15,000 to €65,000 in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow.

"This comes on top of enhancements already made to the scheme. In September I lowered the interest rate for local authority lending by 0.25% and this lower interest rate will continue to apply to loans issued under the Local Authority Home Loan.

"Ultimately, this Government, through Housing for All, is working to put the dream of homeownership back in reach for people. Today's announcement is another step in that direction."