Tenants renting local authority apartments will now be able to purchase their homes under new government legislation.

The amendment to the Housing (Miscellaneous Provisions) Bill 2008, due to be introduced at Dail Committee Stage of the Bill, has been broadly welcomed by Clare TD Tony Killeen.

Local authority tenant purchases have been a feature of the Irish housing system since the 1930s, with the first national scheme being introduced in 1973.

The current scheme has been in operation since 1995, but until now, the sale of flats has not been permitted.

Mr Killeen said: "Tenant purchase has had a very positive impact on social housing in Ireland. It has offered lower income households the opportunity to put down long terms roots in their areas, creating sustainable communities and social stability.

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"I am delighted to see that the government now intends to extend the scope of the scheme and to offer tenants living in local authority apartments similar home ownership opportunities to those that are enjoyed by tenants in local authority houses."

The change in legislation will enable apartment tenants, who cannot afford to purchase a dwelling from their own resources - but could sustain home ownership in the long run - to buy their current accommodation, with support from the State, according to Mr Killeen.

Local authorities will be given power to designate suitable apartment complexes for the purposes of the sale of apartments to tenants.

The local authority will transfer ownership in the apartment complex, including common areas, to a management company to be established by the authority.

Management companies will lease-back all of the apartments to the local authority

Tenants of local authority apartments will be able to purchase their homes for a proportion of the market value, with a charge being placed on the property in favour of the local authority for the portion of the equity not paid for by the purchaser - this charge will decline at a rate of 2% per annum.

If the tenant purchaser wishes to re-sell the apartment at any stage during which there remains a charge on the property, the authority has first refusal on buying it back.

If the authority declines to buy back the apartment, the tenant purchaser may sell it on the market, in which case he or she must pay the authority the value of the outstanding charge on the property.

(PR/JM)