Dáil Éireann Debate, Tuesday - 10 February 2026
393. Deputy Niamh Smyth asked the Tánaiste and Minister for Finance to review issues raised with this Deputy (details supplied); the steps his Department has taken or will take to counter same; and if he will make a statement on the matter. [9853/26]
Amharc ar fhreagraThe Help to Buy (HTB) incentive, 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.
Section 477C Taxes Consolidation Act 1997 (TCA) outlines the definitions and conditions that apply to the HTB scheme. One such condition, where a “qualifying residence” is being purchased rather than self-built, is that a purchase contract is entered into with a “Qualifying Contractor” (QC).
To come within the definition of a “qualifying residence,” a property purchased from a QC must:
• be a new build with the construction subject to VAT in Ireland;
• be bought as the first-time purchaser’s sole or main residence;
• have a purchase value not greater than €500,000; and
• not previously, at any time, have been used, or have been suitable for use, as a dwelling.
As such, properties with a final value exceeding €500,000 do not qualify for the HTB scheme. This threshold includes all payments made in connection with the property whether made directly to contractors, through staged instalments, or via separate agreements for upgrades, modifications, or additions.
In order to become a registered QC, a contractor/developer must first apply to Revenue and meet certain requirements as outlined by section 477C(2) TCA. In summary, the contractor must be tax compliant and be either a zero rated, or 20% rated, contractor for the purposes of Relevant Contracts Tax (“RCT”).
QC’s have a key role in the HTB process, including verifying information provided by the HTB applicant. Where the conditions of the HTB scheme are satisfied and a HTB refund is available, the HTB refund is paid to the QC to be offset against the purchase price of the property.
In relation to the potential for house price increases arising from the existence of HTB, previous studies carried out by Indecon Economic consultants found that the main driver of house prices was the mismatch between supply and demand rather than the existence of the scheme.
The 2022 review by Mazars also found that there is no definitive evidence that HTB pushed up the price of new houses. The review found that the prices paid for new homes by people who received HTB relief were slightly lower than new house prices in the economy in general, likely because of the €500,000 price eligibility cap.
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.
As the Deputy will appreciate, the Programme for Government commits to the "retention and revision" of the HTB scheme. Any revisions to the scheme would have to be considered as part of the annual Budget and Finance Bill processes and take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market.
