The latest report on the First Home Scheme shows that over 11,000 approvals have taken place since its inception in 2022, while the scheme has supported almost 6,000 home purchases to date.
The scheme was set up to provide funding to first-time buyers who, despite having a deposit and mortgage approval in place, still could not cover the cost of a new-build home. In exchange for providing funding, the scheme takes an equity stake of up to 30% in the home.
It has provided almost €393m in support to people who have bought or self-built their homes.
The First Home Scheme’s performance update for the second quarter of this year also reveals that has been extended to more buyers in eight counties. The extension follows the latest of the scheme’s scheduled twice-yearly reviews of the price ceilings that apply to qualifying homes.
The counties / local authority areas seeing an increase of €25,000 in the relevant ceiling are Clare, Donegal, Kerry, Leitrim, Limerick (price ceiling increased for houses only, not apartments), Mayo, Roscommon and Sligo.
Today’s update also shows that the average purchase price for homes purchased, or build cost for homes built, using the scheme is about €392,000, while the average support being provided by the First Home Scheme in these cases is about €67,000 – or 17% of the average purchase price.
It also reveals that 67% of First Home Scheme users are also availing of the Help to Buy scheme.
Meanwhile, 72% of live approvals have been for buyers in Dublin, Cork, Kildare, Meath and Louth, with the remaining 28% spread across the remaining 21 counties throughout Ireland.
Michael Broderick, the First Home Scheme’s chief executive, said the scheme continues to gather momentum among first-time buyers in particular, with over 11,000 approvals to date and over 1,100 in the second quarter of this year.
“This means that 19% of all approvals for the scheme have come this year alone, which is very promising news at a time when innovative and practical housing solutions are in such high demand around the country,” he said.
“The ongoing support for the scheme from the State and participating lenders is very much welcomed and has laid the foundations for the growth we are experiencing now. With that in mind, I am also pleased to announce increased price ceilings for eight counties, which will mean more buyers will be able to access the scheme,” he said.
“I look forward to overseeing further growth in the months ahead and beyond,” he added.
Minister for Housing, Local Government and Heritage James Browne said through substantial investment in the First Home Scheme, the Government has supported thousands of individuals and couples to achieve the security of owning their own home by helping to make purchasing a home more achievable.
“The First Home Scheme plays a vital role in expanding access to home ownership and has already enabled thousands of first-time buyers to secure a home of their own. The enhancements announced today will further strengthen the scheme, making home ownership more accessible and attainable for aspiring homeowners across the country,” he added.
