Dáil Éireann Debate, Wednesday - 28 September 2022
52. Deputy Fergus O'Dowd asked the Minister for Housing, Local Government and Heritage if any further consideration has been given to previous proposals (details supplied) in respect of the first home scheme to address boundary issues in Drogheda, County Louth and County Meath, respectively; and if he will make a statement on the matter. [47084/22]
View answerThe First Home Scheme was launched on 7 July this year. It supports first-time buyers in purchasing new houses and apartments in the private market through the use of an equity share model. Full details of the scheme are available at www.firsthomescheme.ie.
On a countywide basis, regional price ceilings for eligible home purchases have been aligned with the median purchase prices of new-build homes recently purchased by first-time buyers, as found in the CSO’s Residential Property Price Index. The initial setting of the ceilings was also informed by a review of live market data.
The price ceilings for the First Home Scheme are designed to temper inflationary pressures, to target support specifically at the lower part of the price distribution in each area, and to encourage the development of additional housing supply at this level.
It must be recognised that any system of geographically-based price ceilings necessarily requires defined borders. This will result in examples of homes on either side of given borders with differing price ceilings. To this end, the price ceilings from the launch of the scheme were selected in order to strike an appropriate balance between the making sure the scheme could administratively and practically operate, that homes could be made available below those ceilings and to temper any inflationary pressures.
When considered overall, I am confident the methodology broadly reflects price trends across the country, and represents a clear, easily understandable method for utilising the scheme. However, I can advise that it has been confirmed to me a review of price ceilings will be undertaken by the First Home Scheme DAC before year end. In carrying out that review it would be necessary to consider whether available and robust data will support the drawing of borders in an alternative or more finely determined manner and whether the scheme could practically operate any new price ceiling structure being proposed. The review process, which will continue periodically thereafter, is to ensure that the ceilings allow the scheme to deliver on its underlying objectives.
The First Home Scheme Designated Activity Company now holds responsibility for maintaining the scheme, and for reviewing and updating of price ceilings nationally and can be contacted directly at www.firsthomescheme.ie/get-in-touch/.
