Affordable housing is the best way to get on to the property ladder - and there is a rapidly growing supply of such homes becoming available around the country. Kate McMorrow explains how to get one.
Affordable housing is going to be the hot topic this year. First-time buyers are discovering - not before time - that this is by far the best route to a foothold on the property ladder.
Forget the two-hour commute to the city and years scraping a deposit together, just add your name to any local authority waiting list.
And cross your fingers. The number of applicants has grown to the extent that some local authorities - notably Dublin City Council - hold a lottery when new allocations come onstream.
These draws have taken on a festive spirit, with entire streets turning up to cheer on the "home side" as names are pulled out of the hat.
There are two types of affordable housing: schemes built completely or partly by the local authority and Part V, which refers to developments which received planning permission after the legislation passed into law in December 2002.
Under this ruling, developers must hand over up to 20 per cent of their housing units to the local council, some of which will be sold on to first-time buyers at affordable prices.
Part V units are just beginning to be allocated, but councils around the country have been producing affordable housing in partnership with reputable builders for some years now.
Where exceptionally high land value pushes the price out of reach of a first-time buyer - for example, large detached houses in Dublin 4 - the council can negotiate with the developer to transfer their allocation to another site in the same general area.
In all cases, the key word is "affordable". Applicants must earn €50,790 or less per annum and prove their ability to repay the mortgage, which can be arranged by the council.
Candidates cover a wide spectrum, from tradespeople to teachers, nurses and civil servants, even a few trainee pilots, usually at the beginning of their careers and on the lower rungs of the pay scale.
One of the biggest advantages of the Affordable Housing Scheme is the ease with which cash-strapped first-time buyers can obtain funding for that first step on the property ladder. When an offer is accepted, finance is arranged by the local authority in the form of an annuity mortgage.
With Dublin City Council, a deposit of three per cent is normally required on a maximum loan of €165,000 - a fraction of the amount expected in private transactions. Banks have now jumped onto the affordable bandwagon, offering mortgages to suitable candidates.
To establish priority among applicants, authorities use a points system. Housing need and living or working in the locality carry most weight, especially where demand is high.
With the largest waiting list in the country, Dublin City Council is tackling the job of supply with enthusiasm, says senior executive officer Margaret Geraghty.
"We have plans and a substantive programme for the next number of years and we'll continue to seek to increase supply. We're taking it seriously."
Top of the list with Dublin City Council are existing council tenants who will be vacating a local authority property. The next category is applicants on the council's housing list.
The remaining group is graded according to housing circumstances, income and where they currently live.
In every case, applicants must be first-time buyers with an income on or below €50,790. The lower the annual pre-tax salary, the more points awarded, with those earning below €23,395 receiving the maximum of 10 points.
However, ability to meet monthly loan repayments is a key determining factor when offers are made.
Housing associations and co-operatives play an important part in the supply of affordable housing.
When Poolbeg Quay was launched in Ringsend last autumn, the developers turned out to be a group of local women with zero construction experience and buckets of determination.
They negotiated to buy the land from the council, persuaded an architect to draw up plans on the basis of getting paid later and applied for a grant to build over 50 apartments and townhouses.
A thousand locals paid €50 to join a co-operative and be in with a chance of securing an affordable home in the area.
Since 1999, Dublin City Council has completed 550 housing units; a further 120 will be available early this year and 230 are currently under construction.
With the large amount of construction work in the docklands and in the Digital Hub area between Cork Street and Heuston Station, hundreds of aspiring homeowners will be housed through Part V over the next four years.
It costs €50 euro to go on the city council's waiting list for Part V and €30 to be in with a chance
€176,000 for their three-bed house
Adnan Siddiqi, his wife Rizwana and 16-month old daughter Laraib (meaning "personality without doubt") are hoping to move into their three-bedroom house in Scribblestown near Finglas next week.
Originally from Pakistan, Adnan studied accountancy in Dublin and works in the city.
"I'd been trying for the last three years to get a mortgage, but it was hard to save about €25,000 with rent and a family. At the draw in September 2003, there were 700 or 800 people chasing 76 houses. My name didn't come up but I was fourth on the waiting list.
"A month later, the housing association Togáil rang me and gave me the good news - someone had withdrawn and we got a three-bedroom house for €176,000!
"I knew nothing about Finglas and was worried about what the area was like. Dublin City Council suggested we go and see the development and this gave me confidence. It's definitely a great area, just three or four miles from the city centre.
"I'm paying €1,000 a month rent for a house in Lucan. The mortgage for the new house will be €846. And it will be ours."
