Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Nash. As he said, the help-to-buy incentive was announced in budget 2017 as an income tax incentive measure designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand. To date, it has helped individuals and couples to buy or build more than 40,000 homes. In the July 2020 stimulus plan, the scheme was amended so that the level of support available to first-time buyers was increased to the lesser of €30,000, which was up from €20,000, or 10%, which was up from 5%, of the purchase price of a new home or self-build property or the amount of income tax and DIRT paid in the four years before the purchase or self-build. The scheme was extended in its enhanced form in budgets 2021 and 2023.

This section extends help to buy in its current form for a further year to 31 December 2025. This approach takes account of the need for certainty in the market pending an increase in new housing supply envisaged in Housing for All. The scheme is also being amended to enhance its interaction with the local authority affordable purchase scheme. This amendment will enable the use of the affordable dwelling contribution received through the affordable purchase scheme for the purposes of calculating the 70% loan to value requirement, thereby facilitating access for a greater number of affordable purchase scheme purchasers to the help-to-buy scheme.

The second amendment in this section places a statutory obligation on affordable purchase scheme purchasers to provide Revenue with a copy of their contract with the local authority, namely, the affordable dwelling purchase arrangement. This document is required to validate the applicant's eligibility for help to buy. The two amendments will be effective from 11 October and are being operated by Revenue on an administrative basis pending enactment of this Bill.

As indicated at budget time, it is estimated the extension of the scheme will cost in the region of €175 million in 2025, while noting that the support is demand led. The amendment relating to the affordable purchase scheme is estimated to cost in the region of €6 million in 2024.

As I mentioned in my budget 2024 address, the Government is committed to the Housing for All strategy. With this in mind, this section makes three amendments to section 477C of the Taxes Consolidation Act 1997 to give certainty to prospective homebuyers and to the market. Housing is a top priority. I confirm that the help-to-buy scheme will continue to be examined and, if required, additional changes will be considered next year.