With regard to issue of mortgage requirements and the assessment by financial institutions of mortgage applications, these requirements are governed by the Central Bank of Ireland which retains independence in the establishment of macro-prudential policy and mortgage measures.
Information in this regard, including on exemptions and other matters, is available at the following Central Bank links:
www.centralbank.ie/consumer-hub/explainers/what-are-the-mortgage-measures,
and
www.centralbank.ie/financial-system/financial-stability/macro-prudential-policy/mortgage-measures,
I can confirm that Budget 2022 also announced the continuation of the Help to Buy Scheme. This scheme may return tax paid in the previous four years, up to a maximum amount of €30,000, to eligible first-time buyers who can use this amount as a deposit when purchasing a newly constructed home. More information on the Help to Buy scheme is available online at: www.revenue.ie/en/property/help-to-buy-incentive/index.aspx.
In relation to affordable housing measures more broadly, the Housing for All strategy delivers on the Programme for Government commitment to put affordability at the heart of the housing system. Over €4 billion in funding is provided annually, representing the highest ever level of Government investment in building social and affordable housing.
A multi-faceted approach is being implemented to deliver 54,000 affordable homes interventions between now and 2030. This will be facilitated by local authorities, Approved Housing Bodies, the Land Development Agency, as well as through a strategic partnership between the State and retail banks,.
Delivery of affordable housing, in accordance with the Local Authority Affordable Purchase Scheme established in Part 2 of the Affordable Housing Act 2021 will be underpinned by the preparation by each local authorities Housing Delivery Action Plan. This will allow each local authority to determine any affordability constraint in their area based on the Housing Need and Demand Assessment and plan the provision of affordable homes accordingly. Local authorities will be submitting their Plans to me, to include social and affordable housing, before the end of December 2021.
Part 4 of the Affordable Housing Act provides for the ‘First Home’ scheme to primarily support affordability-constrained first-time buyers to purchase privately developed new homes. This scheme will commence in 2022 and will be available at a national level.
Part 3 of the Affordable Housing Act provides for the establishment of a Cost Rental sector in Ireland, through the designation by the Minister of Cost Rental dwellings. Budget 2021 allocated €35 million to the Cost Rental Equity Loan (CREL) scheme which enabled the first Cost Rental homes to be delivered this year by the Clúid AHB at Taylor Hill, Balbriggan. The tenanting processes for further Cost Rental homes at Enniskerry Road in Dún Laoghaire-Rathdown and Barnhall, Leixlip, County Kildare, are currently underway. In total, 390 Cost Rental units will be delivered through this funding, with the initial focus being in the Greater Dublin Area and Cork. A further €75 million was allocated in Budget 2022 to help meet the Housing for All target of 750 Cost Rental homes in 2022.
The LDA will deliver both homes for affordable purchase and Cost Rental. The Housing for All strategy outlined how the Land Development Agency through Project Tosaigh will seek to unlock stalled developments and accelerate the delivery of affordable homes.
The Housing for All strategy also introduced the Local Authority Home Loan as a successor to the Rebuilding Ireland Home Loan scheme. This new scheme will include an increase in the income ceiling for single applicants in urban areas, thus increasing the number of people eligible. Additionally, from 10 September 2021, I have already implemented a reduction of the mortgage interest rate by 0.25% for new borrowers under the existing Rebuilding Ireland Home Loan. This lower rate will also apply to loans issued under the forthcoming Local Authority Home Loan scheme.
Collectively, these measures will improve affordability for all families or individuals across society wishing to secure a home.
