Dáil Éireann Debate, Thursday - 28 September 2023
166. Deputy Richard Bruton asked the Minister for Finance if the full value of help to buy support combined with equity support, through either first homes or a local authority's affordable purchase, continues to be constrained by ceilings on permitted ratios to valuation; if he has considered easing this constraint; and if he will make a statement on the matter. [41976/23]
View answerThe operation of the Local Authority Affordable Purchase Scheme (LAAP) and the First Home Scheme (FHS) are, in the first instance, primarily a matter for Minister for Housing, Local Government and Heritage. In relation to their interaction with the Help To Buy (HTB) scheme, I can confirm that there have been no changes to the HTB scheme specifically addressing any related issues.
HTB, as legislated for by section 477C of the Taxes Consolidation Act 1997, only applies where a mortgage is taken out to purchase or build a home and where the value of the qualifying loan is a minimum of 70% of the ‘purchase value’ of a purchased new build or 70% of the approved valuation of a self-build.
The ‘purchase value’ of a purchased property is the price paid for the residence. In cases where the price paid is less than market value, the ‘purchase value’ will be the market value. The ‘purchase value’ of a property cannot be less than its market value for the purposes of this calculation.
In relation to the question of any potential amendments to HTB pertaining to LAAP or FHS, as the Deputy will appreciate, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions.
