Martin Heydon (Kildare South, Fine Gael)
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53. To ask the Minister for Finance the status of applications received and the processing of same for the help-to-buy scheme for first-time buyers; and if he will make a statement on the matter. [9030/17]

Michael Noonan (Limerick City, Fine Gael)
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The Help to Buy incentive 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. 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.

I am advised by Revenue that the number of applications for the Help to Buy incentive received up to Friday 17 February 2017 was:

Revenue is encouraging prospective applicants to file any necessary tax returns and resolve any outstanding issues before making the HTB application.

Of the 872 successful applications there have been 307 claims, with 77 claims paid and 230 pending verification.  Claims are verified by the qualifying contractor for first-time home purchases or by the solicitor for first-time self-built homes.

*Pending means that the applicants either have to file an outstanding return or address a compliance issue, the application is to be reviewed by Revenue or the applicant needs to finalise his or her application.