Dáil Éireann Debate, Thursday - 8 September 2022
518. Deputy Niamh Smyth asked the Minister for Housing, Local Government and Heritage if he will review the cap of €250,000 for County Cavan as part of the first home buyer's scheme; if he will review a case (details supplied); and if he will make a statement on the matter. [42117/22]
Amharc ar fhreagraThe First Home Scheme, launched on 7 July 2022, supports first-time buyers in purchasing new houses and apartments in the private market through the use of an equity share model. The Scheme uses regional price ceilings based primarily on the median prices of new-build homes purchased by first-time buyers. This is to temper any inflationary pressures, to target support at the lower part of the price distribution in each area, and to encourage additional housing supply at this price level. The ceiling for Cavan has been initially set at €250,000, and that for Monaghan at €300,000. All the price ceilings for the First Home Scheme are available on the scheme website, www.firsthomescheme.ie.
The setting of these initial First Home Scheme price ceilings has been informed primarily by an analysis of published data from the Central Statistics Office, specifically the Residential Property Price Index (RPPI), together with a review of current market data and sales prices for new homes marketed at first-time buyers. Any system of geographically-based price ceilings will necessarily require defined borders, and in the case of the monthly RPPI reports the most robust and informative data is broken down at the local authority level. When considered overall, the system will broadly reflect price trends and represent a clear, easily understandable method for setting appropriate price ceilings.
The First Home Scheme Ireland Designated Activity Company now holds responsibility for maintaining, reviewing, and updating the price ceilings. The scheme has confirmed that a review of ceilings will be undertaken after six months of operation and periodically thereafter, which will ensure that the ceilings allow the scheme to deliver on its underlying objectives.
