Dáil Éireann Debate, Tuesday - 26 July 2022
632. Deputy Cathal Crowe asked the Minister for Housing, Local Government and Heritage if it is his intention to amend any of the existing housing schemes to include second-hand homes to help those who are unable to afford new-build homes; and if not, if a dedicated scheme to this effect will be announced. [39858/22]
View answerThe Government's Housing for All strategy commits to the delivery of 36,000 new Affordable Purchase homes and 18,000 new Cost Rental homes by 2030. Both of the two new Affordable Purchase schemes (Local Authority Affordable Purchase, and the First Home Scheme) support households that, because of current income levels, are unable to secure a mortgage to meet the costs of purchasing a newly constructed home.
The Local Authority Affordable Purchase Scheme assists first-time buyers purchasing Local Authority-delivered homes by bridging the gap between the market value of the home, and the combined value of the buyer's mortgage and deposit. Subject to a minimum price set for each home made available under the scheme, buyers will generally pay a price according to their mortgage-funded purchasing power, with the difference between this and the market value of the home held as a percentage equity stake of up to 40% by the Local Authority.
Current examples of Affordable Purchase delivery under this scheme are:
- South Dublin County Council is making 16 three-bed homes available at Kilcarbery Grange at prices from €245,600.
- Cork City Council will soon deliver homes in Boherboy at initial prices from €218,000 for a 2-bedroom and €243,000 for a 3-bedroom dwelling.
- Fingal County Council will shortly deliver 2-bed apartments at an indicated price of €166,000, with 3-bed dwellings being made for between €206,000 and €258,000, some 20% below market norms.
The new First Home Scheme use a similar equity share model to the Local Authority-led scheme, though it applies to new homes purchased through the private market. The First Home Scheme was launched on 7 July 2022, with full details available at firsthomescheme.ie.
Both of these schemes are focused on new homes because they are designed to contribute towards the increase of housing supply in general, and of suitable homes for first-time buyers in particular. It is only by increasing the number of new homes that the current under-supply in the market can be addressed.
An option already available to support the purchase of second-hand homes is the Local Authority Home Loan. This was introduced under Housing for All as a successor to the Rebuilding Ireland Home Loan. The new Local Authority Home Loan launched on 4 January 2022 and has a lower interest rate and higher income eligibility than previously applied. The Local Authority Home Loan supports first-time buyers purchasing new or second-hand homes, as well as funding self-builds. More details on the Local Authority Home Loan scheme are available at: localauthorityhomeloan.ie/
In addition, the new Croí Cónaithe (Towns) Fund was launched on 14 July 2022 and make grants of up to €30,000 for the refurbishment of vacant properties in towns and villages across Ireland for occupation as a principal private residence. This includes the conversion of properties which have not previously been used as residences. Where the refurbishment costs are expected to exceed the standard grant, additional funding of up to €20,000 may be available when the property is confirmed to be derelict. Full details of the scheme, including the application form, are available at: gov.ie/en/publication/c2183-croi-conaithe-towns-fund/#application-form
