Dáil Éireann Debate, Tuesday - 7 November 2023
321. Deputy Cian O'Callaghan asked the Minister for Finance if he will provide a scenario analysis post-budget 2024 for a person who is a first-time buyer, single and earning €35,000 per year, and how budget 2024 affects them in housing terms; and if he will make a statement on the matter. [47919/23]
View answerFor a person who is a first-time buyer, single and earning €35,000 per year, the following changes made in Budget 2024 may be of relevance:
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation.
Budget 2024 extended the Help to Buy scheme for an additional year to the end of 2025, to give certainty to prospective home buyers and to the market.
Also in Budget 2024 the scheme was amended to enhance its interaction with the Local Authority Affordable Purchase Scheme (LAAP). This amendment will enable the use of the affordable dwelling contribution received through the LAAP scheme for the purposes of calculating the 70 per cent loan-to-value requirement, thereby facilitating access to a greater number of LAAP purchasers to the HTB scheme.
The Rent Tax Credit introduced last year, provides support to certain taxpayers in tenancies registered with the Residential Tenancies Board and certain rent a room arrangements. Budget 2024 increases the amount that can be claimed from €500 to €750, or from €1,000 to €1,500 for a jointly assessed couple. This increase will take effect from 1 January 2025.
