Brendan Smith (Cavan-Monaghan, Fianna Fail)
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197. To ask the Minister for Finance if further consideration will be given to a request outlined in correspondence (details supplied) to his Department; if he plans to amend the criteria for this scheme at an early date; and if he will make a statement on the matter. [8977/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Help-to-Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment.  The incentive gives a refund of Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.   Another main aim of the policy underpinning the design of scheme is to help encourage the building of additional new properties.

With regard to the Deputy's question about extending the scheme to previously owned (but not occupied) properties, HTB is specifically designed to encourage an increase in demand for new build homes in order to encourage the construction of an additional supply of such properties.  A move to include previously owned properties within the scope of the relief would be unlikely to improve its effectiveness; 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 amend the scheme in this regard.

However, in my Budget 2022 address, I announced an extension of HTB for a further year until the end of 2022 and also that a formal review of the scheme would take place in 2022. The intention is that the HTB extension will allow time for the other Housing for All measures with similar policy objectives to be put in place in the period ahead.  It is also the intention that the review that I mention will be fundamental in nature and that it will help inform decisions for Budget 2023 and Finance Bill 2022.

Issues related to the terms of reference and a specific timeline for completion as well as the question of who will carry out the review are being considered by my Department at present and the matter is expected to be moved forward shortly.