Dáil Éireann Debate, Tuesday - 22 February 2022
336. Deputy Niamh Smyth asked the Minister for Housing, Local Government and Heritage if there are schemes open to persons who are not a first-time buyer (detail supplied); if he will provide further details on such a scheme; and if he will make a statement on the matter. [9151/22]
View answerThe Affordable Housing Act 2021, the first ever standalone affordable housing legislation, established a basis for four new affordable housing measures. These measures will deliver on the Programme for Government commitment to put affordability at the heart of the housing system and prioritise the increased supply of affordable homes through (1) delivering affordable homes on local authority lands, (2) the introduction of a new form of tenure in Cost Rental, (3) a First Home shared equity scheme and (4) expanding Part V planning requirements to increase the 10% contribution requirement to 20% and to apply it to cost rental as well as social and affordable housing.
The Local Authority Affordable Purchase Scheme will support purchasers of Local Authority-delivered new homes by bridging the gap between the market value of the home and the combined value of the buyer's mortgage and deposit. Regulations to set out the detailed criteria are at an advanced stage and will be issued in the coming weeks. The first homes delivered through the scheme will be located in Cork City in the coming weeks. Cork City Council indicated the prices to be €218,000 for a 2-bedroom and €243,000 for a 3-bedroom dwelling.
The First Home affordable purchase shared equity scheme, established under Part 4 of the Affordable Housing Act, will act in a similar way to the Local Authority-led scheme, but will support purchases of newly constructed homes on the private market. This scheme will be available and in every county and will incorporate regional price caps based on median house price sales. Confirmation of the final details of this scheme is ongoing in conjunction with the relevant stakeholders and it is anticipated that the First Home scheme will be available for applications from mid year.
While affordable purchase measures are primarily targeted at first-time buyers to provide for new supply and concentrate supports in areas of highest need, the Housing for All strategy also provides for the ‘Fresh Start’ principle. Under the Fresh Start principle both affordable purchase schemes will be available to applicants who are divorced, legally separated or where the relationship has ended and where they retain no beneficial interest in a home.
To further support affordability constrained households to purchase a home, the Local Authority Home Loan scheme commenced on 4 January 2022 and incorporates a lower interest rate, higher income eligibility thresholds, and more flexibility on house size. The Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used for new and second-hand properties, or for self-builds. Whilst targeted at First Time Buyers, the Local Authority Home Loan scheme also applies the Fresh Start Principle.
Importantly, affordable housing measures and schemes are designed to assist purchasers in meeting the costs of newly constructed homes and increasing the overall housing supply. By significantly increasing supply we will help temper inflationary pressures on the wider housing market which will benefit all home purchasers.
Crucially, the CSO reported that housing completions amounted to 20,433 in 2021, a welcome increase over the 2015 reported levels of 7,219. The CSO also report that Commencement Notices for 30,724 new homes were issued in 2021, representing a 42% increase compared with 2020, or roughly the same as the combined reported totals from 2016 & 2017. While these reported figures represent a significant step forward in the Government’s ambition to support the supply of new housing, it remains short of the 33,000 new dwellings annual target under Housing for All. This is why the Government has committed unprecedented levels of funding, averaging €4 billion per year to improve the situation.
Our multi-faceted approach to housing delivery will see greatly increased supply which we recognise is key to addressing inflationary pressures. Our measures will improve affordability for all families or individuals across society wishing to secure a home.
