Written answers

Thursday, 9 March 2017

Department of Finance

Help-To-Buy Scheme

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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99. To ask the Minister for Finance the number of builders that have registered to date for the first time buyer help to buy scheme. [12657/17]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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100. To ask the Minister for Finance the number of persons that have applied to date for the first time buyer help to buy scheme; the estimated total value of those claims; the estimated cost of the scheme for 2017; and if he will make a statement on the matter. [12658/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 99 and 100 together.

I am advised by Revenue that the number of builders that have applied to be registered as qualifying contractors is 205, as at 7 March 2017. The number of builders that have been approved as qualifying contractors, and whose details are published on the Revenue website, is 115.

Furthermore, the number of Help To Buy (HTB) applications received up to 7 March 2017 was:

No. of ApplicationsSuccessful applications*Pending
3,7531,4882,265

*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. The processing time for pending applications depends on the time it takes an applicant to resolve any outstanding matters and Revenue is encouraging prospective applicants to file any necessary tax returns and resolve any outstanding issues before making the HTB application.We are all aware that purchasing a home is a lengthy and potentially complex process. Revenue has designed the online HTB application, claim and verification processes to be straightforward and easy-to-follow. It is very important, however, that all applicants have filed any necessary returns or cleared up any outstanding matters or balances on their record, in advance.The bulk of applicants to date are PAYE taxpayers and if a Form 12 tax return is outstanding it can be filed online very quickly by using 'PAYE Services' in myAccount. If there is a tax due it can be paid using the 'Payments' facility in myAccount.A HTB application can be approved very quickly, where there are no outstanding issues.

Once an application is successful, the time taken for the claim to be submitted depends on the claimant. If he or she has already purchased a home or drawn down the first tranche of the mortgage, then the necessary evidence is available for the claim to be made.

The required evidence for first-time purchasers is a signed contract, mortgage agreement, deposit details and details of the property. When the claim is made the first-time buyer needs to give the HTB Claim number and access code to the Qualifying Contractor so they can verify the claim and input the bank account details to facilitate payment.

The required evidence for first-time self-build claimants is evidence of drawdown of the first tranche of the mortgage and details of the property. When the claim is made the first-time self-builder needs to give the HTB Claim number and access code to the solicitor who can verify the claim and input the necessary loan bank details to facilitate payment to the self-builder's mortgage institution. Once the claim is verified by the contractor or solicitor, the refund can be made very quickly thereafter. More detailed information and guidance regarding these requirements is available on the Revenue website.

Of the 1,488 successful applications there have been 562 claims, which is about 40% of the total. 230 claims have been verified and paid and 332 pending verification, as set out below. 

ClaimsVerified & PaidPending verification
Total562230332

Claims are verified by the qualifying contractor for first-time home purchases or by the solicitor for first-time self-built homes. Of the 115 Qualifying contractors listed on the Revenue website, I am advised that over half of these have already verified claims and received refunds. Additionally, over 60 solicitors have registered their details and 14 of them have already verified self-build claims.

Up to 7 March 2017, €3.48 million has been refunded in HTB claims. This is in line with my Budget estimates, as we expected a number of retrospective cases to make claims early in 2017. Of the 230 claims verified and paid, 158 are retrospective cases.

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