Dáil Éireann Debate, Tuesday - 3 March 2026
343. Deputy Joe Cooney asked the Tánaiste and Minister for Finance his plans to include an annual review of the property price ceiling for the help-to-buy scheme in the budgetary process to account for fluctuations in property prices nationally; the reason the first home scheme can increase the property price ceilings but the help-to-buy scheme cannot; and if he will make a statement on the matter. [16239/26]
View answerThe Help to Buy (HTB) incentive, provided for in section 477C of the Taxes Consolidation Act 1997 (TCA), is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
For a property to qualify for the HTB scheme, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Based on the latest available data (30 November 2025), the scheme has supported over 61,000 individuals or couples to buy or build their own home. To date, the average property value of approved HTB claims was €360,500.
The Programme for Government commits to the retention and revision of the HTB scheme. Any revisions to the HTB scheme, including revisions to the property price ceiling, would have to take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market, but these matters will be kept under review. Furthermore, and as the Deputy will also appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the wider housing market.
The First Home Scheme (the FHS) is a shared equity scheme, funded by the Minister for Housing, Local Government and Heritage and the participating lenders: the Bank of Ireland, Allied Irish Banks Plc and Permanent TSB Plc. I would note that any changes to property price ceilings in the FHS is beyond my direct remit as Minister for Finance as it is a matter for the FHS Designated Activity Company (DAC) which is fully responsible for the operation of the FHS on behalf of all shareholders, including price ceiling reviews.
I am advised that at its launch, the FHS DAC announced it would review all price ceilings at six month intervals. I am further advised the DAC take into account a range of factors as part of these reviews, including the median price and volume of new builds purchased by first time buyers in each local authority area including at sub county level where relevant.
The FHS property price ceilings are set out on the scheme's website: www.firsthomescheme.ie/about-the-scheme/property-price-ceilings/.
