Dáil Éireann Debate, Tuesday - 3 November 2020
613. Deputy Ged Nash asked the Minister for Housing, Local Government and Heritage when the proposed affordable home shared equity scheme will be open for applications; the number of homes that will be made available in year one of the initiative; when the first homes will be available to applicants under the scheme; if he will establish the income thresholds that will be applied; and if he will make a statement on the matter. [33018/20]
View answerAs part of Budget 2021, €110m was allocated for new affordable housing measures including a new national Affordable Purchase Shared Equity Scheme and a new Cost Rental Equity Loan facility for Approved Housing Bodies.
Of this amount, €75 million was allocated for the introduction of the affordable purchase shared equity scheme in 2021. To this end, significant preparatory work has already been carried out by my Department working primarily with the Housing Agency and the Department of Finance.
Building on the clear signal of Government support for the scheme in Budget 2021, I have instructed my officials to complete the necessary work including engagement with sectoral interests such as the Central Bank and European Commission to provide for the scheme's introduction in 2021.
My Department is working with the Department of Finance and banks on the scheme design in order to maximise it's reach and effectiveness. My Department is also engaging with home builders to seek to increase the output of new homes in the next 2-3 years in response to the new scheme.
I intend to target the scheme at First Time Buyers, who are seeking to buy a new home but who cannot quite secure the full mortgage amount to do so at the present time. Subject to the final qualifying criteria, the scheme would see the State take a limited equity stake in a property, in order to help more people meet the cost of buying a new home with their available mortgage.
Intensive engagement continues with key stakeholders informing the final detailed parameters of the scheme.
