Local authorities will build new houses to be sold at cost price in urban areas where house prices have put new homes out of the reach of many first-time buyers. Cost will vary, but could be around £70,000 to £75,000 for a three-bed semi in high-cost housing cities such as Dublin and Galway. People in need of housing, and with the same income conditions as apply for shared ownership are eligible, as long as they can prove ability to repay. People who hand back local authority accommodation qualify without having to pass the income test.

Buyers will qualify for the first-time buyer's £3,000 grant, plus subsidies, if household income falls below £16,000. The typical monthly repayments on a 95 per cent loan for a £70,000 house, at a rate of about 4 per cent, would be about £375.

Each local authority will work out its own system of allocation: where demand exceeds supply (as it inevitably will), it is probable that houses will be allocated to all those eligible by drawing lots. Local authorities will also have a "clawback" clause stipulating that buyers who sell the house within 10 years of getting it will have to pay back the difference between the cost and the original market price, on a sliding scale.

This is to prevent speculation in such houses.

For further information, contact your local authority. The Threshold agency provides housing advice, Tel: 01-8726311.