Dáil Éireann Debate, Thursday - 20 October 2016
92. Deputy Michael McGrath asked the Minister for Finance the number of persons projected to benefit in 2016 and 2017 from the help to buy tax refund; the average benefit expected; and if he will make a statement on the matter. [31415/16]
View answer93. Deputy Michael McGrath asked the Minister for Finance the projected cost of the help to buy tax refund in 2016; and if he will make a statement on the matter. [31416/16]
View answerI propose to take Questions Nos. 92 and 93 together.
As the Deputy will be aware, the "Help to Buy" initiative announced in the Budget, will provide an income tax rebate to first time buyers to assist them in getting the deposit for their first home, as required under the Central Bank's macro-prudential mortgage rules.
As the initiative is demand-led, it is not possible to forecast the numbers of first-time buyers that will choose to avail of it on an annual basis or the average benefit that these individuals will receive. However, initial forecasts of the potential costs by my Department for the coming years, as outlined in Budget 2017, are based on figures in relation to the number of new homes built in recent years and the proportion of which that are purchased by first-time buyers. The scheme will become operational in January 2017, and will be backdated to 19th July 2016, with the first payments being made in 2017. Therefore, there will be no cost in 2016.
