Dáil Éireann Debate, Thursday - 24 October 2024
213. Deputy Colm Brophy asked the Minister for Housing, Local Government and Heritage the cost to the State of extending the first home scheme to first time buyers of second hand properties, based on the same criteria applying to the existing scheme, the same average equity stake and on the basis that 4,000, 5,000, 6,000 and 7,000 homes per year (new and second hand) would be approved under the scheme in each of the years 2026 to 2030. [43742/24]
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 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.
On 6 October, the First Home Scheme published its Q3 2024 report, stating that over 5,560 First Home Scheme approvals have issued since its launch in July 2022 across all local authorities.
The report stated the average purchase price for purchases supported through FHS as €381,634, with the average equity support being provided by the First Home Scheme per home being €66,000 (17% of the average purchase price).
As such, the cost per additional 1,000 homes would be €66m. It should be noted however, that this does not account for any potential increase in the amount of equity share that a customer avails of.
Any additional funding would need to be provided collectively from the State and participating mortgage lenders, i.e. a 50:50 division of funding. Furthermore, as the First Home Scheme is demand driven, funds will be drawn down as and when required.
