Dáil Éireann Debate, Wednesday - 17 January 2024
372. Deputy James Lawless asked the Minister for Finance if he will consider raising the maximum value of the help-to-buy scheme from €500 thousand to €550 thousand in order to allow for inflation costs and the rising cost of materials (details supplied); and if he will make a statement on the matter. [1983/24]
View answerThe 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. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.An increase in the supply of new housing remains a priority aim of Government policy. HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not been previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
To end November 2023, (the latest data is available for) 44,523 HTB claims have been made, of which 90% of claims were for properties which did not exceed €450,000 in value.
A comprehensive independent review of the scheme was carried out by external consultants in 2022. While this review included a number of recommended amendments to the scheme, it did not recommend an increase to the €500,000 house price limit. Ultimately, following consideration of the review, the decision taken in Budget 2024, and subsequently implemented through Finance Act 2023, was to extend HTB until the end of 2025 without amending the house price limit.
It remains the case that, as with any tax expenditure, HTB will be kept under regular review. However, there are currently no plans to extend the scheme to properties valued at over €500,000.
