Dáil Éireann Debate, Thursday - 8 September 2022
541. Deputy John Lahart asked the Minister for Housing, Local Government and Heritage if the first home scheme and the vacant homes scheme can be combined by a first-time purchaser who hypothetically identifies a derelict property which would potentially be their first home; and if he will make a statement on the matter. [42478/22]
Amharc ar fhreagraThe new 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. Full details of the scheme available online at www.firsthomescheme.ie.
From the outset, the First Home Scheme has worked towards on a number of distinct yet interrelated objectives: (1) to enable first-time buyer individuals and families to purchase a new home at a price affordable to them, (2) to help address the issue of viability of developments that could be progressed, by creating a pool of purchase-ready customers, and (3) to encourage new supply at scale to the Irish housing market.
Accordingly, I and the other participants in the First Home Scheme agreed that properties eligible for the scheme should be newly-built houses or apartments in private developments. Further information on this eligibility requirement is available on page 8 of the First Home Scheme brochure, which is online at: www.firsthomescheme.ie/media/4nda0lnn/0827-first-homes-brochure_r14.pdf.
In addition, this aspect of the First Home Scheme also allows purchasers to avail of the Help To Buy tax rebate, which supports first-time buyers in meeting the deposit requirements for newly-built homes. Subject to the level of income tax and DIRT paid over the previous 4 years, the Help To Buy scheme provides a maximum benefit to first-time buyers of 10% of the price of the newly constructed home, capped at €30,000. Full details of the incentive are available at: www.revenue.ie/en/property/help-to-buy-incentive/index.aspx.
The focus of the new Croí Cónaithe (Towns) Fund Scheme is very different, in that it aims to tackle vacancy and dereliction in towns and villages around the country. The Fund has been established to provide additional choices for people to live in towns and villages in Ireland, supporting the future growth and development of towns and villages by delivering the sustainable reuse of vacant properties as homes, which can also support wider regeneration outcomes. In doing so, it provides the opportunity to strengthen Ireland’s rural urban fabric and support the communities who live there by reusing existing buildings. Full details of the scheme are available at:
www.gov.ie/en/publication/c2183-croi-conaithe-towns-fund/.
In short, the scope and objectives of each scheme are different. The First Home Scheme focuses on the viability and affordability of new-build homes, particularly in areas of high demand where they are needed most. The Croí Cónaithe scheme focuses on existing vacant and derelict properties, generally in areas of lower demand. For the reasons outlined, the schemes cannot be combined.
