Pearse Doherty
Question:335. Deputy Pearse Doherty asked the Minister for Finance the estimated cost to the Exchequer of the help-to-buy scheme in the years 2022, 2023 and 2024. [27077/23]
View answerTuesday, 13 June 2023
Questions (335, 336, 337, 338)
Pearse Doherty
Question:336. Deputy Pearse Doherty asked the Minister for Finance the revenue saved were the maximum amount of relief under the help-to-buy scheme reduced to €25,000 and the loan-to-value ratio increased to 75%. [27078/23]
View answerPearse Doherty
Question:337. Deputy Pearse Doherty asked the Minister for Finance the revenue saved were the maximum amount of relief under the help-to-buy scheme reduced to €20,000 and the loan-to-value ratio increased to 80%. [27079/23]
View answerPearse Doherty
Question:338. Deputy Pearse Doherty asked the Minister for Finance the revenue saved were the maximum amount of relief under the help-to-buy scheme reduced to €15,000 and the loan-to-value ratio increased to 85%. [27080/23]
View answerWritten answers
I propose to take Questions Nos. 335 to 338, inclusive, together.
I am advised by Revenue that the total value of claims under the Help to Buy scheme, including both approved and pending claims, are €180.2m and €70.8m for 2022 and to-date in 2023 respectively, based on the claim-stage start date of the application.
Help to Buy is a demand-led scheme which may be subject to a broad range of variable factors. As such, it is not possible to forecast with certainty for 2023 and 2024 the expected number of successful applications or the estimated average payment for approved claims. For this reason, it is not possible to give a precise estimate of cost outturn for those years. However, for the purposes of the Budget 2023 documentation, a figure of €175 million was estimated as the cost of the scheme for 2023 and again for 2024. This estimate was derived by my Department using published Revenue annual statistics for the scheme for 2021 and the end-August 2022 monthly statistics.
I am further advised by Revenue that the estimated annual reduction in the cost of the scheme that would arise from the proposals outlined by the Deputy are as set out in the table below.
|
Proposal |
Estimated Reduction (€m) |
|
Help-to-buy scheme maximum refund reduced to €25,000 and the loan-to-value ratio increased to 75% |
53 |
|
Help-to-buy scheme maximum refund reduced to €20,000 and the loan-to-value ratio increased to 80% |
92 |
|
Help-to-buy scheme maximum refund reduced to €15,000 and the loan-to-value ratio increased to 85% |
129 |
These estimates are based on data for 2022, the last full year for which data are available, and do not take into account any possible behavioural change on the part of taxpayers as a consequence of such changes.
Question No. 336 answered with Question No. 335.
Question No. 337 answered with Question No. 335.
Question No. 338 answered with Question No. 335.