Wednesday, 3 February 2021

Questions (163)

Noel Grealish

Question:

163. Deputy Noel Grealish asked the Minister for Finance his plans to extend the help-to-buy scheme into 2022; and if he will make a statement on the matter. [4990/21]

View answer

Written answers (Question to Finance)

The Help to Buy (HTB) incentive was introduced in 2017.  The measure is currently scheduled to expire on 31 December 2021.

HTB gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. An increase in the supply of new housing remains a priority aim of Government policy. The HTB scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties.

HTB is designed to stimulate the supply of new houses in the housing market and to assist first-time buyers in accumulating a deposit for a new home.  In order to help further meet these goals, I announced an enhancement to the existing scheme with effect from 23 July last for the remainder of 2020 as part of the July Stimulus Package. The legislation that gives effect to this is set out in the Financial Provisions (Covid-19) (No.2) Act 2020. The Finance Act 2020 further extended the period of application of the enhanced levels of support until 31 December 2021.

The question of the future of HTB support beyond its current expiry date is a matter that will be considered in due course in the context of Budget 2022 and the subsequent Finance Bill.