Huge jump in number of first-time home buyers seeking help through €680m shared equity scheme

More than 500 homes were bought in three months using the Government’s First Home Scheme, more than double the number during the same period last year.

The €680m First Home Scheme, also known as the shared equity scheme, is part of the Government’s plan to address the housing crisis.

It was designed to help first-time buyers bridge the gap between their mortgage, the deposit and the price of a new home. The State and participating banks pay up to 30pc of the cost of a newly-built home in return for a stake in the property.

According to the First Home Scheme’s latest update, 5,567 buyers have been approved and 2,415 homes have been bought using the support up to the end of September. The scheme began on July 7, 2022.

The update also said there had been a “significant uplift” in usage during the three months to the end of September. The number of homes bought hit 502 over the period, a 107pc jump on the same time in 2023.

Commenting on the update, Housing Minister Darragh O’Brien said the figures showed how effective the First Home Scheme had been in assisting buyers in getting the keys to their first homes.

The scheme is a big success in bridging the affordability gap for people

“I’m encouraged that the scheme continues to grow strongly, resulting in an extra €280m being committed to the scheme in 2024,” he said.

“This will allow the scheme to help thousands of additional first-time buyers.

“The extension of the scheme for self-builds and tenant purchase is also working really well.

“The scheme is a big success in bridging the affordability gap for people all over Ireland and it’s making a real and tangible difference.”

An update also said around 40pc of First Home Scheme approvals were for buyers who are single and about 60pc were for couples.

O’Brien said he was “particularly pleased” to see the scheme help many single people buy their first homes.

He acknowledged these buyers faced “great challenges in purchasing their first home”.

The update showed the scheme had provided over €159m in support to people since its launch.

The average purchase price for buyers using the scheme is €381,634

More than 12,000 potential buyers have registered their interest in the scheme, with more than 1,561 new expressions of interest being submitted in the three months to the end of September.

A further 696 applications are being processed, and approvals are expected to be issued shortly in the majority of these cases.​

The average purchase price for buyers using the scheme is €381,634. Around €66,000 is the average support provided or 17pc of the purchase price.

The report found 67pc of people who used the First Home Scheme also utilised the Government’s Help to Buy scheme.

Almost three-quarters of the live approvals have been for buyers in Dublin, Cork, Kildare, Meath and Wicklow, with the remainder spread across the other 21 counties.

The total capacity of the First Home Scheme was recently extended by €200m to €680m. The Government has committed to providing €100m of the increase, with the remaining €100m provided by the participating lenders, including AIB, Bank of Ireland and PTSB.

Source: Sean Pollock, Irish Independent, 6th October 2024