Seán Canney (Galway East, Independent)
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182. To ask the Minister for Finance if his attention has been drawn to the fact that the help-to-buy scheme discriminates against single applicants whose loan to value is difficult to achieve on one income due to the loan value of two and a half times their salary; if he will review the criteria and reduce the 70% ratio to 60% for single applicants; and if he will make a statement on the matter. [3568/21]

Richard Bruton (Dublin Bay North, Fine Gael)
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200. To ask the Minister for Finance if he will consider relaxing the terms on the clawback under the help-to-buy scheme in which a family’s need for space has outgrown the original home. [3868/21]

Seán Haughey (Dublin Bay North, Fianna Fail)
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203. To ask the Minister for Finance if he will consider changes to the help-to-buy initiative; if the five year clawback provision can be abolished or reduced so as to allow expanding families purchase other newly-built larger accommodation without having to pay back money to the Revenue Commissioners; and if he will make a statement on the matter. [3888/21]

Peter Burke (Longford-Westmeath, Fine Gael)
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231. To ask the Minister for Finance his plans to extend the help-to-buy scheme beyond December 2021; and if he will make a statement on the matter. [4369/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 182, 200, 203 and 231 together.

The Help to Buy (HTB) incentive was introduced in 2017. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. An increase in the supply of new housing remains a priority aim of Government policy. The HTB scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties.

HTB is designed to stimulate the supply of new houses in the housing market and to assist first time buyers in accumulating a deposit for a new home. In order to help further meet these goals, I announced an enhancement to the existing scheme with effect from 23 July last for the remainder of 2020 as part of the July Stimulus Package. The legislation that gives effect to this is set out in the Financial Provisions (Covid-19) (No.2) Act 2020. The Finance Act 2020 further extended the period of application of the enhanced levels of support until 31 December 2021. The Help-to-Buy scheme itself is also scheduled to expire at that point.

In relation to Deputy Canney's question, The current Central Bank macro-prudential mortgage rules restrict the amount of money a purchaser can borrow to a maximum of 3.5 times of their gross income (i.e. the 'loan to income' rule). The Central Bank is independent in the exercise of its functions. This is not related to the 70% LTV condition of the HTB scheme. HTB provides that a purchaser who does not borrow 70% or more of the value of the home cannot avail of the scheme. Individuals who are in the fortunate position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to more than meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer. Lowering the ceiling, as suggested by the Deputy, could only increase deadweight in the scheme. Further, with regard to the suggestion that single applicants should be treated differently to joint applicants, it is fair and equitable that the scheme treats everyone equally.

In relation to the questions from Deputy Bruton and Deputy Haughey, I am advised by Revenue that Section 477C Taxes Consolidation Act 1997 (TCA) outlines the definitions and conditions that apply to the HTB scheme. A key condition outlined in Section 477C(17) TCA requires that a qualifying residence must be occupied for a minimum period of 5 yearsby the first-time buyer as his or her only or main residence, otherwise the HTB payment, or a proportion thereof, will be required to be repaid to Revenue. The HTB claimant(s) is required to notify revenue if occupation of the qualifying residence ceases within the 5-year period and to repay the relevant amount within 3 months. The rate of clawback due will depend on the year in which the residence ceases to be occupied. The Tax and Duty manual, Part 15-01-46Help to Buy Scheme, under Section 18 provides details regarding the clawback provisions and example scenarios. Where the applicant(s) cease to occupy a property which they have received a HTB payment on within 5 years, due to the family’s need for larger accommodation, they would be required to repay a portion of the HTB payment to Revenue. The payment due would be calculated in proportion to the amount of time they have occupied the property as set out in Section 477C (17)(b)(ii) TCA. I am not considering making any changes to these provisions.

In relation to Deputy Burke's question, as indicated above, HTB is due to expire at the end of the current year. With a measure such as this, it would be normal practice to carry out a review to assist decision making in advance of the scheduled expiry.I do not intend to prejudge the outcome the likely review at this early stage in the year.