Dáil Éireann Debate, Wednesday - 8 February 2023
163. Deputy Joe Carey asked the Minister for Housing, Local Government and Heritage if he will outline the criteria involved for the setting of price thresholds for the shared equity scheme; and if he will make a statement on the matter. [6075/23]
View answer164. Deputy Joe Carey asked the Minister for Housing, Local Government and Heritage if he will provide a breakdown of the number of successful applicants under the shared equity scheme in each county since the scheme commenced in tabular form; and if he will make a statement on the matter. [6076/23]
View answerI propose to take Questions Nos. 163 and 164 together.
The First Home Scheme, launched on 7 July 2022, uses an equity share model to support first-time buyers nationally in purchasing new houses and apartments in the private market. Further information is available on the Scheme website at: www.firsthomescheme.ie.
The Scheme is overseen and managed by the First Home Scheme Ireland Designated Activity Company (First Home DAC), on behalf of scheme founders (the State and participating mortgage lenders). This body is responsible for collating and issuing statistical information as it pertains to the scheme. In a press release covering activity up to 31 December 2022, First Home DAC confirmed that applications had been received from 23 counties, with 750 applications approved and 335 contracts issued. Of these approvals, Kildare had 27%, Dublin 26%, Cork (City and County) 15%, Meath 8%, Wicklow 7%, and 17% for other counties. The Scheme confirmed that the average price of supported purchases was €370,000, and that an average of €71,000 equity support was provided for these (19% of the average purchase price).
At its launch, it was announced by the First Home Scheme that a review of the regional price ceilings would be undertaken within 6 months. This review was conducted towards the end of 2022 on the basis of CSO data on the prices of new homes sold in recent months, as well as a study of the prices of new homes currently available on the market. The analysis also considered the recent inflation in construction costs.
On foot of this review, the First Home Scheme put in place revised price ceilings from 1 January 2023. These are available at: www.firsthomescheme.ie/about/property-price-ceilings/. At a press event confirming the new ceilings on 9 January 2023, it was announced by the Scheme that future reviews will be conducted on a six-monthly basis.
