Some 3,200 first-time buyers avail of Government’s new First Home Scheme

Some 3,200 first-time buyers have availed of the Government’s First Home Scheme since it was launched in July 2022, according to the latest update.

The majority of approvals (77 per cent) were for buyers in Dublin, Cork, Kildare, Meath and Wicklow while the average purchase price of homes bought using the scheme in 2023 was €380,000, with the average State support put at €67,000 (18 per cent of the average purchase price).

The report indicated “a significant uplift” in the scheme’s usage in 2023, with the number of homes bought in the second half of last year more than five times the number bought in the second half of 2022 (799 versus 137).

The €400 million First Home Scheme, also known as the shared equity scheme, is a significant plank of the Coalition’s plan to address the housing crisis.

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Designed to help first-time buyers bridge the gap between their mortgage and the price of a new home, it involves the State and participating banks paying up to 30 per cent of the cost of a newly built home, in return for a stake in the property.

Houses with prices of up to €475,000 and apartments with prices of up to €500,000 are eligible, depending on their location.

The latest update indicated that 3,196 buyers had been approved and 1,255 homes had already been bought using the scheme since the launch in 2022. Of the homes bought, 1,118 were bought in 2023 and 137 were bought in 2022.

A total of 7,530 potential buyers have registered their interest in the scheme, with more than 5,000 new expressions of interest submitted in 2023.

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Eligibility for the scheme was extended in early 2023, following the widening of eligibility criteria for homes in 30 of Ireland’s 31 local authority areas, with the price cap for eligible homes increasing by up to €75,000.

The scheme has further widened the eligibility criteria in six local authority areas – Galway city, Galway county, Limerick, Clare, Laois and Waterford – by increasing the applicable price ceilings by €25,000 in each case, following the completion of its scheduled half-yearly review of price ceilings.

“The figures published today show the First Home Scheme is working effectively and successfully making home ownership a reality for so many first-time buyers,” Minister for Housing, Darragh O’Brien, said.

“It’s really encouraging to see so many people expressing interest in the scheme and making the most of the benefits it offers,” he said.

“Right from the start, we’ve been describing this scheme as a game-changer in bridging the affordability gap. I’m confident it will help thousands more first-time buyers, including people who want to build their own home as well as tenants whose landlord is selling the property,” he said.

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