The Government’s shared equity scheme to help first-time buyers purchase a home is to be expanded to also support people building their first home on land they own.
A significant plank of the Coalition’s plan to address the housing crisis, the First Home Scheme opened in July 2022, with nearly 2,000 successful applicants in its first year.
The scheme was set up to help first-time buyers bridge the gap between their mortgage and the price of a new home, through a joint venture between the State and the three domestic banks – AIB, Bank of Ireland and Permanent TSB.
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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Currently the scheme is open to first-time buyers looking to purchase homes worth up to €475,000, or apartments worth up to €500,000, with lower price ceilings depending on the location of the homes.
The scheme is to be extended to cover up to 30 per cent of the cost of people building a first home on land they own.
It is expected the expansion of the scheme will increase uptake in more rural areas, predominately from applicants such as the adult children of farmers provided a site on the family land to build a home.
Minister for Housing Darragh O’Brien is expected to formally announce the expansion of the scheme to cover self-builds on Tuesday.
Nearly 2,000 first-time buyers were approved for the scheme in its first year, with about 500 homes bought to date.
Four out of five of buyers approved under the scheme have been based in Dublin, Cork, Kildare, Meath and Wicklow.
Commenting on the changes, Mr O’Brien said the amended scheme would help “a new range” of applicants.
“This is a particularly important development for people who live in more rural locations or come from a farming background and who have a site, but not the full level of finance they need to build their new home,” he said.
