First Home Scheme Aids 8,400 Buyers with €66,000 Average Support

The First Home Scheme has provided an average financial support of €66,000 to homebuyers since its launch in July 2022. Recent figures reveal that approximately 8,400 buyers have been approved under the scheme, with 4,118 successfully purchasing homes. This scheme, backed by a fund of €740 million, aims to assist first-time buyers in bridging the gap between their mortgage, deposit, and the price of a new home.

During the third quarter of 2023, from July to September, the scheme approved 794 new buyers, resulting in 425 homes purchased or built. The average purchase price for these homes stands at €387,000, with the support from the First Home Scheme representing about 17 percent of this amount. Overall, the scheme has disbursed over €273 million to individuals who have either purchased or constructed their homes.

Michael Broderick, chief executive of the First Home Scheme, noted the ongoing strong interest in the program. He highlighted that two-thirds of those utilizing the scheme are also benefiting from the Help to Buy scheme. “By combining both schemes, these buyers are able to access additional financial support, allowing them to assemble the necessary deposit while also bridging the funding gap between their mortgage and the price of the new home,” Broderick explained.

This dual approach enhances the ability of participants to achieve home ownership. The First Home Scheme is exclusively available for new properties, which includes self-build projects and apartments. Under the current framework, the State offers interest-free equity for a six-year period, covering up to 30 percent of the home’s value.

There are maximum property price ceilings set for each local authority area, ensuring the scheme is accessible to a broad range of buyers. The initiative operates as a joint venture between the State and three banks: AIB (including its subsidiaries EBS and Haven), Bank of Ireland, and PTSB. Other authorized mortgage lenders in the Irish market may also join the initiative.

Housing Minister James Browne TD expressed the government’s commitment to supporting home ownership, stating that the administration is taking concrete steps toward this goal.

The majority of approvals under the First Home Scheme have occurred in urban areas, particularly in counties such as Dublin, Cork, Kildare, Meath, and Wicklow. Approximately three out of four approvals are concentrated in these regions, with the remaining approvals spread across the other 21 counties in Ireland.

As the demand for affordable housing continues to rise, the First Home Scheme is poised to play a significant role in helping first-time buyers navigate the challenges of home ownership in the current market.