Willie O'Dea (Limerick City, Fianna Fail)
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69. To ask the Minister for Finance if an individual purchasing a home under the incremental purchase scheme from a local authority can avail of the help-to-buy scheme; who ultimately makes the decision in these matters; and if he will make a statement on the matter. [36432/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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. 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.

The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997 and outlines the definitions and conditions that apply to the scheme and is, like all other tax legislation, administered by Revenue.

The HTB scheme is open to all first-time buyers who meet the conditions of the scheme, regardless of whether the first-time buyer is availing of another housing scheme initiative.

A condition of the scheme is that a qualifying first-time purchaser must take out a qualifying loan in an amount equal to at least 70% of the purchase price of the property. Additionally, for the purpose of the loan-to-value ratio calculation, the purchase price cannot be less than the market value of the property and the mortgage loan must be entered in to with a qualifying lender.

A limited exception to how the loan-to-value ratio is calculated relates to HTB applicants also availing of the Local Authority Affordable Purchase Scheme and who receive an “affordable dwelling contribution” in accordance with section 12(2) of Part 2 of the Affordable Housing Act of 2021. Where such applicants have entered a contract to purchase a qualifying residence, the amount of the “affordable dwelling contribution” received from a local authority will be combined with the amount of the qualifying loan for the purposes of calculating the HTB loan-to-value ratio.

Operation of the Incremental Tenant Purchase Scheme for newly built houses is provided for by Part 3 of the Housing (Miscellaneous Provisions) Act 2009 and the Housing (Incremental Purchase) Regulations 2010. The scheme provides a discount between 40% and 60% on the purchase price of a new property depending on the household income of the applicant(s).

As the equity support provided by the scheme does not come within the definition of an “affordable dwelling contribution” operated under Part 2 of the Affordable Housing Act of 2021, the limited exception to how the loan-to-value ratio is calculated does not apply to HTB claimants also availing of the Incremental Tenant Purchase Scheme for new builds.

Therefore, while first-time buyers purchasing a new property under the Incremental Purchase Scheme are eligible to apply for HTB, where discounts of 40-60% on the market value of the property are applied, such purchasers will not meet the required 70% loan to value ratio for HTB as this is calculated by reference to the market value of the property.