Part 4 of the Affordable Housing Act 2021 provides for the establishment of the ‘First Home’ affordable purchase shared equity scheme to support purchases in the private market. The Scheme aims to support c. 8,000 households in acquiring new homes in the private market in the years 2022 to 2026.
First Home will help applicants to afford new homes in the private market through the use of an equity share model, similar to that employed in the Local Authority Affordable Purchase Scheme. The First Home Scheme will primarily support First Time Buyers in the purchase of new homes within designated regional price ceilings, set with reference to the median prices for new homes purchased by first-time buyers in the area. The Government's 'Fresh Start' principle for some previous homeowners will also apply.
The State will operate the scheme in a strategic partnership with participating mortgage lenders and, subject to the necessary final approvals process for all founders of the scheme, it is anticipated that First Home will become operational in the coming weeks. Full information, including eligibility criteria and regional price ceilings for homes, will be available on the First Home website upon the Scheme’s launch.