Dáil Éireann Debate, Tuesday - 8 November 2016
118. Deputy Michael Collins asked the Minister for Finance if he will extend the incentives for first-time buyers announced in budget 2017 to apply to both the purchase of new and second-hand houses; and if he will make a statement on the matter. [33598/16]
View answer131. Deputy Willie Penrose asked the Minister for Finance the reason first time house buyers as recently announced in the budget are confined to new houses when there are many first-time buyers currently buying second-hand houses; and if he will make a statement on the matter. [33860/16]
View answerI propose to take Questions Nos. 118 and 131 together.
The Help to Buy scheme is being introduced as one of the many actions to develop a fully functioning housing market that responds adequately to the needs of our citizens set out in 'Rebuilding Ireland - The Action Plan for Housing and Homelessness' which was launched last July.
One of the policy aims of the Help to Buy scheme is to help increase the supply of housing, by increasing first-time buyers' capacity to meet the requirements of the Central Bank macro-prudential rules and thus placing more individuals in the position of being able to afford a new home. It is hoped that turning notional demand into real demand will generate the supply response, as developers who may have been struggling to raise funding to build houses will be in a position to point to this increased real demand in negotiations with lenders.
Extending the scheme to apply to second hand properties would have no impact on increasing the supply of new homes being built and thus could not contribute to increased supply. As a result, the rebate will only be available in respect of newly built property.
