Affordable Housing FAQs
Can I re-sell my 'Affordable Property'?
Yes, you can re-sell your affordable property. However, having bought your new home at a price significantly below the market value, it is necessary to ensure that profiteering does not occur. Affordable housing has been designed with a "clawback" process included. What this means is than when you sell your home you repay to the Council a percentage of the sale price and this is known as the clawback. This percentage is directly linked to the initial discount that you received when you purchased your home.
If a property purchased under the scheme is resold within 20 years, the percentage of the sale price discounted by the Local Authority would be payable to the Local Authority by the purchaser on the proceeds of the re-sale of the property. The amount payable shall be reduced by 10% in respect of each complete year after the 10th year during which the person who purchased the property has been in occupation as his or her normal place of residence.
Example:
Original Market Value of House €154,000
Sale Price to Affordable Housing Applicant €129,000
% Discount Received 16%
(Market Value of the house at time of original sale – Sale Price to
Affordable Housing Applicant) x 100
----------------------------------------------------------------------------- = %
Market Value of the property at time of original sale
No. of yrs before Property is resold 5 yrs 15 yrs 20 yrs
Sale Price on Resale of Property €190,000 €200,000 €210,000
% of Proceeds of Sale due to be
repaid to the Local Authority 16% 8% Nil
Amount due to be repaid to the LA €38,000 €16,000 Nil
