Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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463. To ask the Minister for Finance if he will give consideration to the extension of the help-to-buy incentive scheme for first-time buyers to include the purchase of existing dwellings given the shortage of new housing developments and the difficulty in getting planning permission for new builds in rural areas; and if he will make a statement on the matter. [18222/21]

Seán Canney (Galway East, Independent)
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477. To ask the Minister for Finance if he will extend the help to buy scheme to include the refurbishment of old property to upgrade; if not, if the scheme will be reinstated for habitation for first time homeowners; and if he will make a statement on the matter. [18451/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 463 and 477 together.

The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also has as a key aim the encouragement of additional supply of new houses by supporting demand. 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.

In addition to the conditions laid down in section 477C Taxes Consolidation Act 1997 (TCA), including that the property is occupied as the sole or main residence of a first time purchaser, section 477C(2) defines a ‘qualifying residence’. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. If the property was non-residential, but has been converted for residential use, it may qualify for HTB. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for HTB.

In relation to second-hand properties generally, an increase in the supply of new housing remains a priority aim of Government policy. As mentioned above, 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. A move to include second-hand properties within the scope of the relief would not improve the effectiveness of the relief; on the contrary it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply. I have no plans to extend HTB to second-hand properties.

Pa Daly (Kerry, Sinn Fein)
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464. To ask the Minister for Finance the number of drawdowns from the help-to-buy scheme in County Kerry in each of the years 2016 to 2020 and to date in 2021. [18234/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Help To Buy (HTB) scheme is designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home.

HTB has a two main stages: the application stage and the claim stage. Compliant taxpayers who complete a HTB application are provided with an application number and a summary of the maximum relief available to them under the incentive. A mortgage provider, broker, qualifying contractor or solicitor can use this summary to verify the relief available to the applicant, for the purposes of mortgage approval or drawdown, or signing a house purchase contract.

An application will progress to the claim stage where the applicant decides to purchase a property that is eligible for the scheme. Many applications may never progress to the claim stage because the applicant does not purchase a property or purchases a property not eligible for the scheme.

Claims made cannot be approved and paid until the qualifying contractor, or the solicitor acting on behalf of self-builder, has verified the claim. Claims are approved by Revenue in the vast majority of cases but at any given time there will be a number of pending claims awaiting approval.

I am advised by Revenue that annual and monthly statistics on the Help to Buy (HTB) scheme are published on their website. Both reports provide a geographical breakdown of approved HTB claims, including data in relation to County Kerry. This data is summarised below:

* Up to end Q1 (latest data available)

** The 2017 figure includes approved retrospective claims made in 2017 in respect of the period 19 July 2016 to end 2016, as provided for in the relevant legislation.

In addition, monthly statistics on the HTB are also available and published at:

with data up to March 2021 included.