State steps up second-hand housing acquisitions with €373m intervention in 2026 market
Dublin to account for almost half of purchases as councils authorised to forward commit into 2027
25 February 2026 | editor@irishrealestate.news
The State will intervene in the second-hand residential market to the value of €373 million in 2026 under the Second-Hand Social Housing Acquisitions Programme, marking a significant increase in public purchasing activity year on year.
The allocation is more than €80 million higher than the €290 million drawn down by local authorities in 2025. Last year, councils provisionally spent €231.6 million on acquisition costs alone, completing 775 purchases nationwide, excluding refurbishment and associated professional fees.
Almost half of the 2026 funding is concentrated in the Dublin region. Dublin City Council has been allocated €110.7 million, Fingal €30.7 million, South Dublin €28.3 million and Dún Laoghaire-Rathdown €16.2 million. Combined, the four authorities account for €185.9 million, just under 50% of the total national allocation.
In output terms, Dublin City completed 213 acquisitions in 2025, representing more than a quarter of all second-hand purchases by local authorities nationally. Fingal completed 67 and South Dublin 66. The scale of 2026 allocations indicates continued, concentrated public purchasing activity in the capital’s resale market.
Beyond Dublin, Cork City has been allocated €20.7 million, Limerick €17 million, Kildare €14 million and Galway City €11.5 million. The Housing Agency has a further €23 million allocation, alongside a €15.8 million contingency fund.
Of the €373 million total, €150 million is ring-fenced for acquisitions supporting exits from long-term homelessness and €50 million is reserved for Approved Housing Bodies delivering accommodation for older people, people with disabilities and care leavers. This leaves €157 million available for general discretionary use by local authorities.
The 2025 data show uneven absorption capacity across authorities. Nationally, councils spent 73% of their initial allocations on acquisitions. Some exceeded their budgets, including Dún Laoghaire-Rathdown at 113.95% and Fingal at 111.96%. Others recorded significant under-spend, including Galway County at 18% and Kilkenny at 4% of allocation.
The programme also operates on a multi-annual basis. Local authorities are authorised to commit up to 30% of their 2026 base allocation to acquisitions that will complete in 2027. This forward-commitment mechanism supports pipeline management but also means a portion of this year’s headline allocation will translate into transactions closing next year.
For the real estate investment market, the data confirm that the State remains a large-scale, price-active purchaser of second-hand housing stock, particularly in Dublin and other high-demand urban centres. With close to €186 million concentrated in the capital alone and the ability to forward commit into 2027, local authorities are positioned to remain a material participant in the resale market over the coming 18 months.
