Written answers

Thursday, 12 November 2020

Department of Housing, Planning, and Local Government

Social and Affordable Housing

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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213. To ask the Minister for Housing, Planning, and Local Government the level of funding under the affordable housing scheme that will be allocated to County Monaghan in 2021; and if he will make a statement on the matter. [35994/20]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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In Budget 2021, the total funding being made available for the delivery of housing programmes was €3.3 billion. From this sum, €468 million will be specifically provided to support housing affordability measures. This includes the Serviced Sites Fund, the Local Infrastructure Housing Activation Fund, the Rebuilding Ireland Home Loan and the Land Development Agency (LDA).

€50 million will be allocated for the Serviced Sites Fund (SSF) in 2021. The purpose of the SSF to provide infrastructure to support the delivery of more affordable new homes for purchase or rent in those areas where local authorities have identified an affordability challenge and the viability to deliver homes and below open market purchase prices. The SSF is specifically targeted at those local authorities where an affordability challenge had been clearly identified and where the provision of affordable homes is economically viable. Informed by the affordability and median price of new homes for First Time Buyers in Monaghan, which currently is approximately €200,000, at present County Mongahan does not have active SSF projects.

In addition to the Services Sites Fund, Budget 2021 ring fenced €75 million for a new national Affordable Purchase Shared Equity Scheme. I intend to target the scheme at first time buyers, who are seeking to buy a new home but who cannot quite secure the full mortgage amount to do so at the present time. Subject to the final qualifying criteria, the scheme would see the State take a limited equity stake in a property, in order to help more people meet the cost of buying a new home with their available mortgage. To this end, significant preparatory work has already been carried out by my Department working primarily with the Housing Agency and the Department of Finance. I intend to introduce this scheme in 2021 and intensive engagement continues with key stakeholders to inform the final detailed parameters of the scheme, as well as with home builders to seek to increase the output of new homes in response to the new scheme.

Other measures such as the Help to Buy Scheme and the Rebuilding Ireland Home Loan are also available to eligible purchasers nationally to make home ownership more affordable.As part of the €7 billion July stimulus plan, an enhanced version of the Help-to-Buy scheme was announced. This will allow first-time buyers purchasing a newly-built home – or building one themselves – to claim back up to €30,000 paid in income tax and DIRT on bank deposit interest over the last four years. Full details of the Help to Buy initiative are available at www.revenue.ie/en/property/help-to-buy-incentive/index.aspx.

The Rebuilding Ireland Home Loan is a Government-backed mortgage which is for first-time-buyers nationwide to purchase a new or second-hand home or to self-build. This scheme offers loans on competitive terms to those who are unable to secure a commercial bank loan. Full details of the scheme are available at .

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