An allocation of €480 million has been made to assist first-time property purchasers in covering the financial void between mortgage, deposit, and the final cost. The initiative, known as the First Home Scheme, is set to benefit a larger pool of buyers due to a recent expansion.
The scheme, which undergoes a review every six months, has increased the maximum price of eligible properties, following its most recent evaluation. The adjustment adds €25,000 to the cap in 14 of the 31 local authority regions in Ireland.
Limerick will see the maximum for houses rise by €25,000 to a total of €425,000. The apartment cap remains at €450,000 in said area. A raise of €25,000, taking the total to €350,000, will be applied to the housing and apartment ceilings in the other 13 areas.
AIB (together with EBS and Haven), PTSB, and the Bank of Ireland jointly operate the scheme with the State, with potential opportunities for other licenced Irish mortgage lenders to get involved.
The immediate effect of these modifications will open the scheme to further first-time buyers, who, until now, were unable to qualify if their desired property’s price exceeded their local authority’s ceiling. The changes may also stimulate increased production of new dwellings in regions where the supply is currently sparse.
Any new property with a value of €350,000 or less is now eligible to participate in the scheme, regardless of its location in Ireland. For regions with the highest demand, the maximum prices for apartments and houses have been set at €500,000 and €475,000 respectively.
Housing Minister, Darragh O’Brien, commented that these amendments benefit first-time buyers. The scheme supports home ownership for those who would otherwise be unable to afford it. The scheme has been successful and the Government, along with the partnering banks, are committed to its continued progress.
The CEO of the First Home Scheme, Michael Broderick, stated that the aim of the price ceilings is to balance encouraging scheme use, boosting housing supply, and preventing local housing market price distortion.
“The half-yearly evaluation process for our pricing limits significantly contributes to bringing about the necessary adaptability, allowing the First Home Scheme to adjust to the ever-changing real estate climate across all cities and counties in Ireland. This aims to assist a large number of first-time property buyers.”