Bernard Durkan (Kildare North, Fine Gael)
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75. To ask the Minister for Finance the extent to which existing incentives for first-time house buyers are assisting those who are eligible; and if he will make a statement on the matter. [2323/17]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is enquiring about the parameters of the Help to Buy incentive which was initially announced on 19 July 2016 as part of the "Rebuilding Ireland: Action Plan for Housing and Homelessness." The design of the scheme was outlined in Budget 2017, and the full details were set out in Finance Act 2016.

The initiative aims to assist a first-time purchaser fund the deposit required to purchase or self-build a new house or apartment to live in as their home. The scheme is open to both those who are purchasing new builds from a developer, and those who self-build. By restricting it to new builds and new self-build homes only, it is anticipated that the resulting increase in demand for affordable new build homes should encourage the construction of an additional supply of such properties.

Broadly, the relief takes the form of a rebate of income tax, including DIRT, paid over the previous four tax years. The maximum possible rebate is 5% of the purchase price or valuation for a self-build up to a maximum of €400,000. Although relevant properties valued at up to €500,000 can qualify, the maximum relief is capped at €20,000 per property, subject to the applicant having paid sufficient income tax and DIRT over the previous 4 years.  Where more than one individual is involved in purchasing or building a new home, all of the individuals must be first-time buyers.

There are additional conditions of the scheme that must be met, including that the property must have been purchased or built as the first-time buyer's principal private residence, and that the mortgage taken out to purchase or build the home must be a minimum of 70% of the purchase price or 70% of the value of the property in the case of a self-build.

Applications for the Help to Buy incentive can be made to the Revenue Commissioners. Further details on it and how to apply are available from the Revenue Commissioners website at the following links:

Stephen Donnelly (Wicklow, Social Democrats)
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76. To ask the Minister for Finance if his Department has reviewed the impact of the introduction of the first-time buyer's grant; if so, the findings on the impact of these sales; and if he will make a statement on the matter. [2402/17]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the 'Help to Buy' incentive which was initially announced on 19 July 2016 as part of 'Rebuilding Ireland: Action Plan for Housing and Homelessness' and provided for in the recent Budget and Finance Act. The Action Plan contains a significant volume of responses to the current housing crisis, of which the Help to Buy incentive is one.  This comprehensive Action Plan takes a holistic approach in addressing the many interacting structural constraints affecting the housing market in areas such as planning and land use, as well as regulation and skills deficits in the construction sector. While the primary focus of the Action Plan is to tackle structural constraints, fiscal supports can play a supporting and time-bound role in addressing the current problems in the housing sector. It is in this context that the Help-to-Buy scheme should be considered.

I wish to assure the Deputy that my Department continues to monitor developments in the property market, including property prices, on an ongoing basis. The Deputy will also be aware that I have committed to commissioning an independent economic impact assessment of the Help to Buy incentive.  It will focus specifically on the workings of the incentive and its impact on the housing market generally, including any potential impact on property prices. This findings of this assessment will be available later in the year, following the completion of the required public procurement processes, awarding of the contract and completion of the relevant analysis.

I would point out that the relevant online application facilities were launched by the Revenue Commissioners on the 3rd of January 2017 and as such, the incentive has only been operational for just over two weeks. In this regard, it would be very early to consider the measurement of the impact (if any) of the incentive.