Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I thank the Minister for taking my paper on this particular issue. I look forward to further engagement with him and his Department on the points I raised. The scheme is designed on a loan-to-value ratio of 70%. The scheme has been a success but no scheme will ever be perfect. If it went below a loan-to-value ratio of 70%, it would raise questions in terms of the possibility of deadweight.

My proposal is straightforward. I want people to be able to purchase their own homes. There is a cohort that will not qualify for social housing even with the new income limits. The highest limit, which is band one, will go from €35,000 to €40,000. Somebody in the cohort above that income range gets a 40% discount under the local authority affordable housing scheme where the income limit is 3.5 times a person's earnings. If the person has an income of €46,000, he or she can purchase his or her own home under the help-to-buy scheme with the council retaining a 40% stake. If it goes to four times earnings on an income of €40,500, the person will qualify to purchase his or her own home with the State retaining 40% equity. In that case, with a €300,000 home, which is the example Mazars used, the person gets €18,000 under the help-to-buy scheme. Overall, this is good value for money. I am supportive of the scheme. I look forward to further engagement with the Minister and his officials and I thank him for his open engagement on the matter.

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