Written answers

Tuesday, 15 November 2022

Department of Housing, Planning, and Local Government

Housing Schemes

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

257. To ask the Minister for Housing, Planning, and Local Government the proposals relating to financial assistance packages for first-time buyers or renovators that have been brought to his Department for costing and consideration; if he is giving consideration to any such packages; if so, when they will be available for drawdown; and if he will make a statement on the matter. [56283/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Supports for first time buyers are provided for under the Housing for All strategy which delivers on the Programme for Government commitment to step up housing supply and put affordability at the heart of the housing system. Housing for All has an ambitious target of 300,000 homes over the next decade for social, affordable and cost rental, private rental and private ownership housing.

Under pathway 1 of this strategy, “Pathways to Home Ownership and Increasing Affordability”, I have introduced a range of schemes primarily targeted at supporting first-time buyers to purchase their own home.

Specifically, the Local Authority Affordable Purchase Scheme assists first-time buyers purchasing Local Authority-delivered new homes by bridging the gap between the market value of the home and the combined value of the buyer's mortgage and deposit. Affordable Purchase homes will be advertised on the relevant Local Authority’s website in advance of their sale, as well as eligibility requirements such as household income limits. The delivery of affordable housing by Local Authorities is supported by the Affordable Housing Fund, with €60 million being made available in 2022, increasing to €90 million in 2023.

The First Home affordable purchase shared equity scheme, which is available nationally, acts in a similar way to the Local Authority-led scheme, though it applies to homes purchased through the private market through the use of an equity share model. The scheme was launched on 7th July and, subject to eligibility criteria, it can provide funds up to 30% of the value of the property (or 20% if you use the Help to Buy Scheme).

Overall, the Scheme is intended to support up to 8,000 affordable purchases in the period out to 2026. The State has committed an overall funding envelope of €200m over the lifetime of the scheme to be matched by the participating lenders. Full details of the Scheme, including eligibility criteria, are available on the website: www.firsthomescheme.ie

Other measures, such as the Help to Buy Scheme (www.revenue.ie/en/property/help-to-buy-incentive/index.aspx) and the Local Authority Homeloan are also nationally available to eligible first-time purchasers to make home ownership more affordable.

The new Local Authority Home Loan commenced on 4 January 2022 and is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used by first-time buyers for both for new and second-hand properties, or for self-builds. €250 million will be available in 2023 for lending under the expanded scheme. More details on the Local Authority Home Loan scheme are available on the following link: localauthorityhomeloan.ie

The Help-to-Buy incentive supports First-time Buyers in meeting the deposit requirements for newly-built houses or apartments, as well as self-build homes. Subject to the level of income tax and DIRT paid over the previous 4 years, the Help-to-Buy scheme provides a maximum benefit to First-Time Buyers of €30,000 or 10% of the cost of the newly constructed home. As of the end of September 2022, over 35,000 first-time buyers have been supported by the incentive. As part of Budget 2023, the Minister for Finance confirmed the continuation of the scheme until the end of 2024.

In relation to supports available to those looking to renovate vacant properties, Pathway 4 of Housing for All sets out a blueprint to address vacancy and make efficient use of our existing housing stock. Many areas of cities, towns and villages of all sizes face the blight of vacant properties, which, if brought back into use, could add vibrancy and provide new accommodation in those areas. The Croí Cónaithe (Towns) Fund is a key initiative which underpins these policy objectives set out in Pathway Four of Housing for All.

Schemes under the Fund, which are delivered by local authorities, provide new choices for people to live in towns and villages in Ireland, through the provision of a grant to support the refurbishment of vacant properties and by providing serviced sites in towns and villages to people in order to build their own homes.

On the 14 July, I launched the Vacant Property Refurbishment Grant, funded by the Croí Cónaithe (Towns) Fund. The grant will benefit those who wish to turn a formerly vacant house or building into their principal private residence. A grant of up to a maximum of €30,000 is available for the refurbishment of vacant properties for occupation as a principal private residence, including the conversion of a property which has not previously been used as residential. Where the refurbishment costs are expected to exceed the standard grant of up to €30,000, a maximum top-up grant amount of up to €20,000 is available where the property is confirmed to be derelict, bringing the total grant available for a derelict property up to a maximum of €50,000. I am pleased to say that just today, I formally launched the extension of the Vacant Property Refurbishment Grant Scheme to eligible vacant properties in both cities and rural areas in addition to towns and villages.

On 21 September, I launched the Ready to Build Scheme, also funded by the Croí Cónaithe (Towns) Fund. Under the Ready to Build Scheme, local authorities will make serviced sites in towns and villages available to potential individual purchasers to build their homes. These sites will be available at a discount on the market value of the site for the building of a property for occupation as the principal private residence of the purchaser.

In addition to the above, my colleague, Mr. Eamon Ryan, T.D., Minister for the Environment, Climate and Communications has introduced a range of retrofitting and renovation programmes for existing homeowners and communities which are administered by the Sustainable Energy Authority of Ireland. More information is available at the following link: www.seai.ie

Comments

No comments

Log in or join to post a public comment.