Regulations setting out the circumstances on which new house grants would be paid after 14 November 2002 came into force on the day of the announcement of the abolition of the new house grant scheme. However, because of the difficulties that have been faced by some housing grant applicants in meeting the deadline of completing and occupying their new houses, I concluded that the fairest approach was to extend the deadline for completion, occupation and receipt of a request for payment of the grant in my Department from 13 November 2003 to Friday 2 April 2004. In returning their request for payment by the new deadline, applicants will have to produce evidence of occupation. It should be emphasised that this extension applies only to those who submitted valid applications received prior to the application deadline of 4 December 2002. Where all other conditions of the scheme are met, these applicants now have until Friday, 2 April 2004 to complete and occupy their house and return a request for payment to the Department. A new house grant will not be paid under any other circumstance.
The fact that payment of the grant was dependent upon occupation of their new homes by a deadline was one of the stipulations outlined to applicants in correspondence and in media advertisements. The deadline for occupation and return of a request for payment to the Department, now the 2 April 2004, was adopted to achieve closure of the scheme, to allow re-prioritisation of this budget provision to other social and affordable housing programmes and to prevent speculative applications on houses that might not be built for years to come. The strict application of these deadlines is necessary to preserve the integrity of the scheme. Consequently, no exemptions will be provided for applicants who do not respect this deadline.
Following the termination of the new house grant scheme, the Government, in budget 2003, has better targeted relief for first-time purchasers by increasing the first-time buyer ceilings up to which relief at the standard rate is available. The ceilings have increased from €3,175 for a single person to €4,000 and from €6,350 to €8,000 for a married couple. Furthermore, the period for which relief is available has been extended from five to seven years.
