Government Supports
The First Home Scheme
Activated in July 2022, this scheme supports first-time buyers in purchasing new houses and apartments in the private market through the use of an equity share approach. The scheme assists those who cannot quite secure the full mortgage amount. The First Home Scheme is a €680m fund set up to help First Time Buyers and others under the Fresh Start principle to bridge the gap between their mortgage, deposit and the price of a new home as part of the Government’s Housing for All strategy.
The Scheme is a joint venture between the State and three banks, currently AIB (including subsidiaries EBS and Haven), BOI and PTSB, and remains open to other authorised mortgage lenders in the Irish market to join the scheme.
PROPERTY PRICE CEILINGS
The Help to Buy Scheme
For First Time Buyers, the Help to Buy Scheme, which is based on a refund of tax paid over the previous 4 years subject to an upper limit of the lesser of €30,000 or 10 per cent of the purchase price of their new home.
Since its introduction this scheme has assisted over 50,000 parties secure home ownership and has been very successful in doing so. While sometimes categorised as a demand side initiative, the reality is that it aids builders by providing confidence to increase housing delivery on the supply side and resulting in increased output. Taking into account construction cost increases, inflation and the cost of housing in the Greater Dublin Area it would be an appropriate time now to increase the now historic threshold from €500,000 to €600,000 or close to it.
• For further information or to start your application: https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
Affordable Housing Scheme
Under the Affordable Housing Scheme, the local authority makes homes available at a reduced price for buyers who are seeking to purchase a newly built home but need to bridge the gap between their mortgage and deposit to cover the full price of their homes. These homes are being built on Council owned land through advance purchases from Private Developments.
The Affordable Housing Scheme provides purchasers with an equity facility. Purchasers enter into an Affordable Dwelling Purchase Agreement with the local authority and receive funds from them in return for the Council taking a percentage ownership in the property purchased, i.e. the equity share.
