Effort to bypass help to buy scheme being examined, says housing regulator
The Property Services Regulatory Authority (PSRA), which licences and regulates auctioneers and estate agents, said it was not aware of such practices taking place, but encouraged any first-time buyers who were faced with such an incident to lodge a formal complaint.
The Irish Times reported yesterday that a prospective home buyer contacted estate agents Sherry FitzGerald, asking if the developer of a new estate would consider selling a home for €500,000 so it would qualify for the help to buy scheme.
The agent said it would not qualify for the scheme as it is priced at €525,000 and above the €500,000 cap. The agent subsequently contacted the buyer, saying the price of the home had been split so that it qualified for the scheme, with the house costing €500,000 and the flooring in the home costing €25,000.
Reacting to the report, a spokesperson for the PSRA said it has the power to issue minor and major sanctions, including suspensions and fines.
'The PSRA was not aware of the practice of estate agents assisting developers circumvent the help to buy (HTB) scheme by asking first time buyers for the excess of €500,000, which is the limit under the HTB scheme, in cash,' they said.
The PSRA would encourage first-time buyers who are approached by estate agents to enter into this practice to make a complaint to the PSRA [and] include all relevant evidence.
Contacted by the Irish Examiner, Sherry Fitzgerald said it has launched an internal investigation.
'At this point, we believe that this is an isolated incident relating to a single property. Our client is not privy to any negotiations with any prospective buyer.
'Following the conclusion of our investigation, we will take whatever steps are necessary to ensure that such a situation cannot occur again.'
Administered by the Revenue Commissioners, the scheme provides a refund on income tax of up to €30,000 to first-time buyers on new-build properties up to a value of €500,000.
For a property to qualify under the scheme, it must be purchased or built as the first-time buyer's home and, if purchased, it must be purchased from a qualifying contractor. The tax refund is paid directly to the contractor.
In the first four months of 2025, some 17,144 applications were received for the scheme — almost 5,000 more than in the same period in 2024. Contacted by the Irish Examiner, the Department of Housing referred questions to the Department of Finance, which referred the matter to Revenue.
In a statement, Revenue said it could not comment on individual cases but said the €500,000 threshold includes all payments made in connection with the property.
'Splitting payments, omitting costs, or structuring arrangements to artificially remain below the threshold constitutes non-compliance,' Revenue said, adding that a range of sanctions could be imposed.
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