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Housing Schemes

Dáil Éireann Debate, Tuesday - 15 February 2022

Tuesday, 15 February 2022

Questions (390)

Joe Flaherty

Question:

390. Deputy Joe Flaherty asked the Minister for Housing, Local Government and Heritage if he will provide an update on the first home affordable purchase shared equity scheme; when the scheme will be available to access; and if it will be available countrywide. [8401/22]

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Written answers

The Affordable Housing Act 2021, which I commenced in August 2021, laid the provisions for the introduction of two new affordable purchase schemes: a public affordable purchase scheme delivered via Local Authorities and the Land Development Agency, and also the national First Home shared equity scheme supporting purchases in the private market.

Part 4 of the Act provides the basis for the establishment of First Home. The scheme will support first-time buyers on moderate incomes in purchasing new-build homes by means of an equity stake model, similar to that used in the Local Authority Affordable Purchase scheme. First Home will be subject to regional price ceilings reflective of the median prices paid by first-time buyers for new-build homes, so it is an intervention to assist buyers in the lower area of the price distribution. The scheme will be targeted at those who have insufficient funds to purchase a home at its market price using the mortgage and deposit available to them by using the available equity support to ‘bridge the gap’.

Budget 2022 allocated €44 million to my Department for First Home. The banking sector has confirmed it is committed to working with the State to develop and deliver this scheme, and has agreed in principle to match this State funding in order to increase the pool of funding available to potential new homeowners. Subject to the necessary approvals by all parties, it is anticipated that the First Home scheme will operate for the period 2022 to 2026, utilising overall funding of c. €400m to provide support to c. 8,000 households to purchase new homes.

The scheme will be operated by a newly-established ‘First Home Scheme Ireland’ Designated Activity Company, which was incorporated in December 2021. Significant work is continuing on the detailed design and parameters of the scheme and full details, including scheme conditionality, will be confirmed upon completion of this work. It is anticipated that initial activity on key areas of work, including public communications, will be conducted early in Q2 this year, in advance of the first receipt of applications and deployment of equity support, scheduled for end Q2.

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