Written answers

Thursday, 29 March 2018

Department of Finance

Help-To-Buy Scheme Data

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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107. To ask the Minister for Finance the median and mean tax rebate issued to first-time buyers under the help to buy scheme in 2017; the cost of the scheme in 2017; and the number of purchasers that availed of the scheme on a national, Dublin and ex-Dublin basis in tabular form. [14764/18]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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113. To ask the Minister for Finance the number and value of help to buy applications that were originally granted but were subsequently found to not qualify for the grant; the number and value of cases in which the borrowers did not qualify at the time of the purchase of the property; the number and value of cases in which the borrowers did not qualify due to the breaking of the terms of the help to buy scheme; and if he will make a statement on the matter. [14826/18]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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114. To ask the Minister for Finance the number and value of successful help to buy applications since its inception; the average grant by region; and if he will make a statement on the matter. [14827/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 107, 113 and 114 together.

The Help to Buy (HTB) incentive was introduced in Finance Act 2016, backdated to 19 July 2016. The online HTB system was made available by revenue in January 2017 and I am assured by Revenue that there are no issues with the system and that it is robust and working correctly.

I am advised by Revenue that there were 5,392 HTB claims in 2017, of which 4,824 have been approved, with a combined total cost to the Exchequer of €68.9m. The median and mean tax rebate for HTB claims approved in 2017 is €14,750 and €14,277 respectively. From inception of the scheme to end February 2018, there have been 6,005 claims, of which 5,529 have been approved, with a combined total cost of €79.4m.

The following table sets out 2017 claims on a national, Dublin and ex-Dublin basis:

AreaAmount
National5,392
Dublin 2,052
Ex-Dublin3,340

I am further advised by Revenue that HTB statistics for 2017 are available on their website

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These statistics show the number of HTB applications that have reached the claim stage in 2017 broken down by geographical area. The average value of approved claims (to end February 2018) by county is given in the following table.

CountyAverage Value of Approved HTB Claims
Carlow€10,988
Cavan€10,808
Clare€11,601
Cork€14,536
Donegal€9,973
Dublin€15,941
Galway€12,812
Kerry€13,084
Kildare€15,206
Kilkenny€13,831
Laois€10,415
Leitrim€11,587
Limerick€11,694
Longford€12,406
Louth€11,848
Mayo€12,977
Meath€13,783
Monaghan€10,424
Offaly€10,958
Roscommon€12,909
Sligo€12,071
Tipperary€11,877
Waterford€10,512
Westmeath€11,983
Wexford€11,087
Wicklow€14,947

In relation to ineligible claims, I am advised by Revenue that it is not possible to provide information on these at the time of the purchase of the property or due to breaking the terms of the incentive. The HTB incentive operates on a self-assessment basis and the claim is also verified by the qualifying contractor. Eligibility of retrospective claims is reliant on meeting the criteria in respect of a contract executed in the relevant period. The online system rejects claims unless the details provided by the claimant are in accordance with the relevant eligibility criteria. In line with Revenue’s normal risk-based approach, targeted checks are carried out to confirm the eligibility of claims. Where it is clear that despite the details input by the claimant, the eligibility criteria were not in fact met, Revenue will, in accordance with the legislation, seek to recover the amounts claimed incorrectly and apply interest and penalties, where appropriate.

I am also advised by Revenue that, to date, only a very small number of follow-up compliance letters have issued to claimants and where documentary evidence is provided that confirms eligibility for the scheme, this allows for the matter to be resolved to Revenue’s satisfaction.

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