Bernard Durkan (Kildare North, Fine Gael)
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74. To ask the Minister for Finance the extent to which existing incentives for first-time house buyers is assisting those who are eligible; and if he will make a statement on the matter. [25150/17]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the Help to Buy (HTB) incentive, which assists with funding the deposit required to purchase or self-build a new home to be used as the individuals principal private residence. 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 5% of the valuation for a self-build. 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 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.

The HTB scheme assists first-time buyers in making up the deposit to go towards their first home. The recent changes to the Central Bank's macro prudential rules means that such buyers must be in a position to fund a deposit of a minimum of 10% of the purchase price, or property value in the case of a self build. The HTB scheme can assist with the provision of up to half of this deposit, where the conditions of the scheme are met. I am firmly of the view that the scheme is of great value for those who may have difficulty in saving for such a deposit. Particular individuals who may be encountering such difficulties include those who are paying substantial rents, and those who incur significant childcare costs. I would also point out however, that first-time buyers must continue to meet the loan to income requirements of the macro prudential rules.

Given the level of interest and uptake of the scheme, data on which are updated regularly on the Revenue Commissioners website at , I consider that the scheme is operating as intended.