Dáil Éireann Debate, Tuesday - 18 November 2025
635. Deputy Ken O'Flynn asked the Minister for Housing, Local Government and Heritage the estimated mortgage burden for first-time buyers under current interest rate conditions; the measures being taken to ease this burden; and whether the new strategy includes any support for households facing rising mortgage costs. [63901/25]
Amharc ar fhreagraMatters relating to mortgages are a matter for my colleague, the Minister for Finance.
The Government’s new housing plan, Delivering Homes, Building Communities 2025 – 2030, contains a suite of measures that make buying a home more affordable for first-time buyers and fresh start applicants.
Through the new Plan, Government is funding an ambitious Starter Homes Programme nationwide which will support access to an average of 15,000 Starter Homes supports annually to 2030, while working to secure more enduring solutions to starter home viability and affordability.
The Starter Homes Programme will bring together the existing variety of supports under one umbrella to strengthen the focus and visibility of these initiatives. Building further on achievements to date, this will drive increased supply and improved affordability to help thousands more people.
The First Home Scheme (FHS) will continue to support people to buy a new home in the private market or to build their first home, using a shared equity model. Government and participating banks provide support for up to 30% of the cost of the home in return for equity in the home, which the purchaser can buy back at any time.
The FHS has increased access to its support by extending the Scheme to include eligible applicants building their own home and enabling tenants to purchase their home from landlords intending to sell the property. In line with the Programme for Government, work will commence with the pillar banks to examine the further expansion of the scheme to support first time buyers seeking to purchase and renovate derelict or long-term vacant properties.
Furthermore, building on the extension of the scheme to the end of 2027, Government will continue to work with the pillar banks with a view to extending the operation of the scheme to 2030.
The Starter Home Purchase Scheme will see increased affordable housing delivered by local authorities and the LDA. It will support eligible households to buy new, high-quality, starter-sized homes at upfront reduced prices, delivered via a shared equity approach. Higher delivery of homes under the scheme will see improved access to apartment purchase via the scheme and greater availability of affordable purchase homes nationwide.
The Help to Buy (HTB) scheme supports eligible buyers who wish to buy a newly built house or apartment. It is available for new homes that cost €500,000 or less. Within the umbrella of the Starter Homes Programme, this support for deposit accumulation can be combined with either the First Home Scheme or the Starter Home Purchase Scheme, thereby providing an additional affordability support.
The Vacant Property Refurbishment Grant (VPRG) provides funding to refurbish vacant and derelict homes for residential use. A grant of up to €50,000 is available to renovate a vacant property and up to €70,000, if the property is derelict. Delivering Homes, Building Communities is committed to reactivating housing stock through this grant. It is a key element of Government support for increased home ownership and improved affordability, ensuring access to the right Starter Home support in the right place.
In addition, the Local Authority Home Loan will continue as a government-backed mortgage option for eligible first-time buyers and certain other applicants to achieve homeownership. The Local Authority Home Loan can be used to buy both new and second-hand homes.
The Government is acutely aware of the challenges the cost of a mortgage can place on first-time buyers. Delivering Homes, Building Communities, will see the delivery of 300,000 homes, address the needs of the most vulnerable in our communities and make buying and renting homes more affordable. The Plan can be accessed on the following link: www.gov.ie/en/department-of-housing-local-government-and-heritage/publications/delivering-homes-building-communities-2025-2030-an-action-plan-on-housing-supply-and-targeting-homelessness/.
