Dáil Éireann Debate, Tuesday - 24 February 2026
370. Deputy Michael Collins asked the Tánaiste and Minister for Finance if he will assess the clear regional disparity created by the use of open-market valuations in determining eligibility for the help-to-buy scheme (details supplied). [14349/26]
Amharc ar fhreagra371. Deputy Michael Collins asked the Tánaiste and Minister for Finance the rationale for using a theoretical sale price as the determining valuation for a self-build in areas such as the Mizen Peninsula (details supplied); and if alternative valuation methodologies have been considered. [14350/26]
Amharc ar fhreagra372. Deputy Michael Collins asked the Tánaiste and Minister for Finance if he will consider adopting the same build-cost assessment model already used by lending institutions when evaluating self-build mortgages, in order that applicants in high-valuation areas such as Schull are assessed on actual construction costs rather than inflated market values for help-to-buy eligibility. [14351/26]
Amharc ar fhreagraI propose to take Questions Nos. 370 to 372, inclusive, together.
The 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.
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.
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.
Details of the scheme HTB scheme are set out in section 477C of the Taxes Consolidation Act 1997 (TCA). It states that in order to be eligible to make a HTB claim, an applicant must have either:
entered into a contract with a qualifying contractor for the purchase of a qualifying residence, that is not a self-build qualifying residence, or
drawn down the first tranche of a qualifying loan in respect of a self-build qualifying residence.
A condition of the HTB scheme is that the “purchase value/approved value" of a property must not exceed €500,000. Section 477C(1) TCA defines “purchase value” as:
in the case of a qualifying residence, the price paid for the qualifying residence, being a price that is not less than its market value, or
in the case of a self-build qualifying residence, the “approved valuation.”
An “approved valuation”, in relation to a self-build qualifying residence, is defined by legislation as the valuation of the residence as approved by the qualifying lender at the time the qualifying loan is entered into. This valuation is determined by the qualifying lender in accordance with the Central Bank’s macro-prudential rules. These rules stipulate the valuation as being the lower of the market value of the site plus the cost of construction or the lender's projected market valuation of the property upon completion.
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. However, I would note that to allow for substantively different eligibility criteria in respect of self-build properties vis–a-vis that which applies to all other new build home would raise issues of tax-equity.
