€32 million will be made available by the government to buy more than 260 properties for social housing. €20 million will go directly to local authorities and provide for the purchase of up to 131 homes for those on waiting lists.

While €12.2 million will be allocated to buy properties for those living with disabilities. These acquisitions have been prioritised by local authorities and will be completed by a range of approved housing bodies. 135 housing units will flow from this initiative.

The Department of the Environment says that this funding arises from "the Minister’s efficient management of the Department’s capital budget allocation for 2013 and also savings secured across some budget headings".

The number of people on the housing list in Ireland has risen dramatically in the past two years and now stands at 110,000.

The Minister for Social Housing Jan O'Sullivan says while it is not a significant number of homes, the government is doing the best it can.

The Irish Council for Social Housing has welcomed the announcement today, but says the government can do more for the sector. Donal McManus is executive director for the body.

"It is certainly a benefit to be able to purchase homes in the current market" he said.

"We would call in the medium term - even in relation to the Budget - for almost a stimulus plan to activate the social hosing market even more".

"Particularly for housing associations who can leverage in private finance - so you're able to stretch the amount of state money with private money" he added.