Brendan Griffin (Kerry, Fine Gael)
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65. To ask the Minister for Finance if the help-to-buy scheme will be extended to second-hand properties; and if he will make a statement on the matter. [25040/22]

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 offers a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in Section 477C of the Taxes Consolidation Act 1997.

For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. In the circumstances where the house was previously used as a dwelling but knocked down and rebuilt, then it is considered “new”. First-time buyers may purchase a site containing a house which is derelict and which they plan to demolish, in whole or in part, with the intention of building a new house. First time buyers intending to undertake such purchases should contact Revenue via MyEnquiries outlining the specific circumstances of their case and Revenue will consider them on a case by case basis.

In relation to the specific question about extending the scheme to second-hand properties, HTB is designed to encourage an increase in demand for new build homes in order to encourage the construction of an additional supply of such properties. An increase in the supply of new housing is fundamental to resolving the current housing crisis and so remains a priority aim of Government policy. A move to include second-hand properties within the scope of the relief would not improve its effectiveness; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional new supply.

Finally, as the Deputy may be aware, I announced in my Budget 2022 address that a formal review of HTB would take place in 2022. Following a successful procurement competition, a contract for the review is currently being finalised.

The review will help inform decisions for Budget 2023 and Finance Bill 2022. However, without wishing to prejudice the outcome of the exercise, it is unlikely that it will lead to an extension of the HTB scheme along the lines mentioned by the Deputy.