Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 9 and 20 together.

The primary aim of the help to buy scheme is to encourage additional supply of new houses by supporting demand. It also assists first-time purchasers with the deposit they need to buy or build a new home. The scheme provides a refund of income tax and deposit interest retention tax paid in Ireland over the previous four years, subject to the limits outlined in the legislation. Based on the latest available data from 31 March, it has supported almost 55,000 individuals or couples to buy their own home. In addition to the conditions laid down in the scheme, including that the property be occupied as the sole or main residence of a first-time purchaser, the scheme defines a qualifying residence.

The legislation is very specific as to the definition of a qualifying residence. It must be a new building that was not at any time used or suitable for use as a dwelling. If the building was non-residential but has been converted for residential use, it may qualify for the help to buy scheme. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for the scheme.

Regarding second-hand properties generally, an increase in the supply of new housing remains a crucial aim of the Government. As I mentioned, the help to buy scheme is specifically designed to encourage an increase in demand for affordable new-build homes to encourage the construction of an additional supply of such properties. The scheme includes a claw-back provision where the minimum occupation period of five years is not met.

It should, of course, be borne in mind that the Government has put in place many other measures in addition to the help to buy scheme to support first-time buyers. They include the first home scheme and the local authority affordable purchase scheme. The programme for Government commits to the retention and revision of the help to buy scheme. As the Deputy will appreciate, any revision to the scheme would have to be considered as part of the annual budget and Finance Bill process and take into account the effective operation of the scheme and the impact any changes could have on the broader housing market.

That cuts to the core of the point I made in response to an earlier question. I thank the Deputy for raising this issue. The big concern I have, and I would appreciate his views on this, is that if the scheme were to be made available to homes that have already been built, it could run the risk of making those homes more expensive and, in turn, less affordable. I do not want to see that happen. I welcome the Deputy's views on this. The help to buy scheme plays a very important role, and I am committed to its retention, but I want to ensure that by having it available, it not only helps with a deposit but also helps with new homes being built.

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