Dáil Éireann Debate, Tuesday - 8 October 2024
263. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage the estimated cost of increasing first home scheme delivery above current targets per 250-unit increments, in tabular form. [40269/24]
Amharc ar fhreagraThe First Home Scheme, which launched in July 2022, is a shared equity scheme, designed to help bridge the gap for eligible first-time buyers, eligible homebuyers, and self-builders, between their deposit and mortgage, and the price of their new home (within price ceilings established across the country). Full details are available on the First Home Scheme website, www.firsthomescheme.ie.
The Scheme aims to support in the region of 8,000 households in acquiring new homes in the private market in the years 2022 to 2026 with an overall commitment of €680m. However, as the First Home Scheme is demand driven, funds will be drawn down as and when required.
The First Home Scheme Designated Activity Company is responsible for the operation and management of the First Home Scheme on behalf of its shareholders - the State, Allied Irish Bank, Bank of Ireland and Permanent TSB. Full details are available on the First Home Scheme website, www.firsthomescheme.ie.
On 6 October, the First Home Scheme published its Q3 2024 report, stating that over 5,560 First Home Shared Equity Scheme approvals have issued since its launch in July 2022 across all local authorities, with 74% of all approvals issued in Dublin, Cork, Kildare, Meath and Wicklow. The pipeline of applications continues to grow, with the number of new applicants in Q3 2024 6% higher than the same period last year (823 in Q3 2023 versus 775 Q3 2024).
The report also stated the average purchase price for purchases and the average support being provided by the First Home Scheme per home. Based on this, the estimated cost for increasing delivery by 250 homes is set out in the following table:
|
Average Purchase Price for purchases |
Average Support provided by First Home Scheme |
% Equity of average purchase price |
Effect of supporting an additional 250 homes |
|
€381,634 |
€66,000 |
17% |
€16.5m |
Any additional funding would need to be provided collectively from the State and participating mortgage lenders, i.e. a 50:50 division of funding.
