James Lawless
Ceist:98. Deputy James Lawless asked the Minister for Housing, Local Government and Heritage the measures he is taking to increase home ownership; and if he will make a statement on the matter. [33140/23]
Amharc ar fhreagraThursday, 6 July 2023
Ceisteanna (98)
Freagraí scríofa
Affordability and the chance to own a home is at the heart of the Government’s housing policy. As detailed in the Housing for All strategy, the Government has introduced a number of measures to support households and individuals wishing to purchase a home, as well as increasing the overall supply of new homes, with an ambitious target of 300,000 new homes up to 2030.
Under Pathway 1 of this strategy, “Pathways to Home Ownership and Increasing Affordability”, two new Affordable Purchase schemes have been established (the Local Authority Affordable Purchase Scheme and the First Home shared equity scheme), and an improved Local Authority Home Loan scheme.
The Local Authority Affordable Purchase Scheme primarily supports first-time buyers purchasing Local Authority-delivered new homes by bridging the gap between the market value of the home and the combined value of the buyer's mortgage and deposit. Affordable Purchase homes will be advertised on the relevant Local Authority’s website in advance of their sale, and set out eligibility requirements such as household income limits. This scheme uses an equity share model to give eligible purchasers the opportunity of home ownership at a significant discount.
The First Home shared equity scheme, launched last July, employs a similar equity share model in order to support households unable to afford the purchase of new homes in the private market. Subject to eligibility criteria, it can provide funds up to 30% of the value of a newly constructed home (or 20% if the Help to Buy Scheme is used). Overall, this scheme is intended to support up to 8,000 affordable purchases in the period out to 2026, and the State has committed funding of €200m, to be matched by the participating mortgage lenders.
Furthermore, the Board of First Home Scheme Designated Active Company has extended the scheme, making it available to sitting tenants who have been issued a Notice of Termination and offered first right of refusal. The same eligibility criteria will apply and this element of the Scheme has been open for qualifying applicants since 17 April.
Full details of the First Home Scheme, including eligibility criteria, details of the revised price ceilings that came into effect 1 January this year, and how to apply are available on the scheme website: www.firsthomescheme.ie.
Other measures, such as the Help to Buy Scheme and the Local Authority Home loan are also nationally available to eligible first-time purchasers to make home ownership more affordable.
The Help-to-Buy incentive supports First-time Buyers in meeting the deposit requirements for newly-built houses or apartments, as well as self-build 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 €30,000 or 10% of the cost of the newly constructed home. As of the end of May 2023, over 39,000 first-time buyers have been supported by this incentive. Further details of this scheme are available here: www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
The new Local Authority Home Loan commenced on 4 January 2022 and is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used by first-time buyers for both for new and second-hand properties, or for self-builds. More information on the Local Authority Home Loan is available on the website: localauthorityhomeloan.ie/.
Lastly, for those wishing to purchase and renovate vacant or derelict properties, the new Vacant Property Refurbishment Grant is also available nationwide and it provides for grants for refurbishment of vacant properties of up to €50,000 or €70,000 if the property is derelict. The scheme has been extended to cover houses built up to 2007, and is available for properties intended for rental as well as owner-occupied.
I also announced last year, a new Ready to Build serviced sites scheme under the Fund where local authorities will provide sites at a discount to people who want to build their own home. Information on both of these schemes is available directly from local authorities.