Dáil Éireann Debate, Tuesday - 5 July 2022
224. Deputy Thomas Gould asked the Minister for Housing, Local Government and Heritage if a person may avail of the first home scheme to purchase a house sold under a local authority-led affordable housing scheme. [35570/22]
Amharc ar fhreagraThe Affordable Housing Act 2021 provides for two new affordable home purchase schemes, which both use an equity share model. Part 2 of the Act provides for the Local Authority Affordable Purchase Scheme, and Part 4 of the Act provides for the First Home Scheme.
Newly-built homes made available by local authorities under the Local Authority Affordable Purchase Scheme will be sold below market value, with the difference between the market value and the selling price held as a redeemable equity stake by the local authority. The initial price paid for a home under this scheme will generally be based on the purchasing power of the applicant, subject to a minimum sale price set by the local authority
The First Home Scheme will support purchases of new homes in the private market, and aims to support in the region of 8,000 households in the years 2022 to 2026. By bridging the gap between the mortgage financing available to purchasers and the price of the new home they wish to buy, First Home will help applicants to afford new homes through the use of an equity share model, similar to that employed in the Local Authority Affordable Purchase Scheme. The 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. Full details will be released upon the imminent launch of the Scheme.
As equity support is already incorporated into the below-market price set for a particular home and purchaser under the Local Authority Affordable Purchase Scheme. As such, it is not intended that purchases made under the Local Authority Affordable Purchase Scheme would also be eligible for support under the First Home Scheme.
