Some 659 homes were bought with assistance from the Government’s First Home Scheme in the first six months of the year, according to an update from the Department of Housing, a “significant uplift” of more than 100 per cent from the same period last year.
It brings to 4,856 the total number of buyers who have received approval under the scheme since its inception in 2022. A total of 1,914 buyers across 26 counties had completed the purchase of a home under scheme by the end of June, the department said on Thursday.
The €400 million First Home Scheme, also known as the shared equity scheme, is one plank of the Coalition’s plan to address the housing crisis.
Designed to help first-time buyers bridge the gap between their mortgage and the price of a new home, it involves the State and participating banks paying up to 30 per cent of the cost of a newly built home, in return for a stake in the property.
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The latest update on the initiative also points to an expanding pipeline of applications to the scheme. Some 1,894 buyers applied in the first half of the year, an increase of 43 per cent on the first six months of 2023, the department said.
Some 610 applications are “currently being processed”, according to the update, with approvals expected to issue shortly.
Dublin, meanwhile, remains the county with the most live approvals – one that has not expired or been withdrawn by the buyer – accounting for 27 per cent of the total followed by Cork with 15 per cent, Kildare with 14 per cent and Meath and Wicklow with 10 per cent a 9 per cent respectively. The other 21 counties accounted for a quarter of all approvals since 2022, the figures reveal.
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Minister for Housing and Local Government Darragh O’Brien said the scheme has proved hugely popular as a way for buyers to bridge the funding gap.
“The scheme is effective and it’s delivering. It’s also flexible – we’ve extended it to tenants looking to buy their home and to people building their own home and it’s great to see these extensions working so well.”
The minister said: “The first two years have been very encouraging and I expect thousands more First-Time Buyers will benefit from the Scheme over the coming years.”
Following a regular review of the scheme, the Government announced earlier this month it would be extended to more buyers with the price ceilings increased by €25,000 across 14 of 31 local Government areas in the State.
The new price ceilings, which are now in effect, mean that every new house valued at €350,000 or less will be eligible for the scheme, irrespective of its location in Ireland. Higher price ceilings of up to €500,000 for apartments and €475,000 for houses apply in areas of greatest demand.
Michael Broderick, chief executive of the First Home Scheme, said the initiative is “resonating well” with first-time buyers. “We’d encourage anyone looking to buy or build their first home to check out what we offer. On average we’re providing support of €67,000 to First Time Buyers and that’s a really substantial level of support.”
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