Irish Govt Funds First Time Buyers With An Extra €100m

The Government is preparing to allocate an additional €100 million to the First Home Scheme, a measure designed to support first time buyers in Ireland. Minister for Housing Darragh O’Brien is planning a significant boost to the scheme’s funding.

This initiative, which is expected to be presented to Cabinet soon, comes as part of a broader push by the Government to expand housing support in the lead-up to its final budget on October 1st.

The First time buyers Home Scheme operates as a shared equity initiative, enabling eligible first-time buyers to receive up to 30% of the purchase price of their home in exchange for a proportional share of equity in the property.

The goal is to reduce the financial barriers to home ownership, making it easier for individuals and families to step onto the property ladder. The latest funding injection is set to build on the €40 million allocated to the scheme last April, which has already facilitated thousands of new home purchases.

With the additional €100 million, the Government estimates that the scheme could help finance up to 8,000 new homes.

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Since its inception, the First time buyers scheme has garnered significant interest from potential buyers, with more than 11,000 individuals registering for the program. To date, over 5,000 applicants have been deemed eligible, underscoring the high demand for affordable homeownership options in Ireland’s challenging housing market.

The scheme’s expansion aims to further bridge the affordability gap and provide much-needed relief to prospective homeowners facing soaring property prices.

The decision to enhance the first time buyers scheme’s funding comes amid a backdrop of mounting pressure on the Government to tackle the housing crisis, which continues to dominate public discourse. Recent figures reveal that 14,429 people were in emergency accommodation last month, marking a record high and highlighting the severe nature of the ongoing crisis.

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The Government’s commitment to expanding housing supports is seen as a critical step in addressing these challenges, though many believe that a more comprehensive approach is needed to resolve the deeply rooted issues within the housing sector.

The increased funding for the First time buyers Home Scheme is part of a series of measures aimed at alleviating the housing shortage. By providing additional financial support to first-time buyers, the Government hopes to stimulate the market and boost housing supply, which has been stifled by rising construction costs, planning delays, and limited availability of affordable homes.

The expanded scheme will also offer a lifeline to those who have been priced out of the market, offering a viable path to homeownership that might otherwise be out of reach.

In addition to the Government’s efforts, the housing crisis is set to be a focal point in the upcoming general election, with opposition parties unveiling their own strategies to address the issue.

Sinn Féin is expected to publish a detailed plan on Monday outlining its approach to increasing housing supply and making homes more accessible. The party has been critical of the Government’s handling of the housing crisis, arguing that more radical interventions are needed to meet the scale of the problem.

Since the housing crisis remains a hot political issue and a major concern to most of the voters, the Government of Ireland has addressed this issue by providing more cash to the First time buyers Home Scheme.

Nevertheless, this measure is only one of the many facets of the general approach and, despite being by far from sufficient, it is one step forward in offering real help to first-time buyers and alleviating the burden created by the existing housing market in Ireland.