Dáil Éireann Debate, Tuesday - 5 July 2022
244. Deputy Fergus O'Dowd asked the Minister for Housing, Local Government and Heritage if a response will issue to matters raised in correspondence (details supplied) regarding the shared equity scheme and the significant price cap difference between counties Louth and Meath, which adversely affects applications in Drogheda, County Louth; and if he will make a statement on the matter. [36061/22]
Amharc ar fhreagraThe imminent launch of the First Home Scheme will see first-time buyers helped to purchase new houses and apartments in the private market through the use of an equity share model, similar to that employed in the Local Authority Affordable Purchase Scheme. It has been previously confirmed that the provision of support under the scheme will be subject to regional price ceilings set with reference to the median prices for new homes purchased by first-time buyers in each area. The price ceilings for the Scheme will be confirmed upon the Scheme’s launch.
The setting of the initial First Home Scheme price ceilings has been informed primarily by an analysis of published current CSO data, specifically the Residential Property Price Index (RPPI), together with a review on live market data and sales prices for new homes by first-time buyers. Price ceilings will be set to temper inflationary pressures and to target support at the lower part of the price distribution in each area.
Any system of geographically-based price ceilings will require defined borders. Inevitably, this will result in examples of homes on either side of given borders with differing price ceilings. However, when considered in the overall, I am confident the system will broadly reflect price trends, and represent a clear, easily understandable method for utilising appropriate price ceilings.
The First Home Scheme will keep any ceilings under review to ensure they allow the scheme to deliver on its underlying objectives.
