Mairead Farrell (Galway West, Sinn Fein)
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134. To ask the Minister for Housing, Planning, and Local Government the type of risk analysis that has been undertaken in relation to the planned shared equity scheme (details supplied); and if he will make a statement on the matter. [10856/21]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Broadly, the objectives of an Affordable Purchase Shared Equity scheme are to improve access and affordability of new homes for First Time Buyers, stimulate an increase in supply by improving confidence as to the viability of future housing developments to meet increased realisable demand, and support economic recovery from COVID-19 by encouraging employment in the construction and related sectors.

It is intended that the scheme will be targeted 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. It will help eligible purchasers to secure their own home by bridging the gap between the mortgage available to them and the price of the home that is suitable to meet their needs. There is no borrowing requirement beyond that already permitted under the Central Bank’s macro-prudential rules.

Work on the detailed design of the proposed scheme is ongoing and at an advanced stage, involving detailed consideration of all aspects of the Scheme taking on board feedback and in consultation with stakeholders.

It is my intention to launch later this year and, once operational, it will target Exchequer resources to simultaneously address the key challenges of affordability and supply. It is anticipated that the Scheme will be supported and operated in partnership with the retail banks. Depending on the final design, this would allow support for in the region of 1,500 to 2,000 households to buy new homes in the first year.

More broadly, the Affordable Housing Bill, which I published earlier this year, will facilitate affordable housing delivery by local authorities, approved housing bodies, the Land Development Agency and on the open market. This is a major step forward in providing much needed affordable housing to buy and rent to squeezed middle income earners in Ireland.