Latest news with #FirstHomeScheme
Irish Daily Mirror
28-07-2025
- Business
- Irish Daily Mirror
National property prices to increase by an average of 5% over the next 12 months
Estate agents expect national property prices to increase by an average of 5% over the next 12 months - down slightly from the 6% increase forecast in January. Over half of the agents - who are members of the Society of Chartered Surveyors Ireland (SCSI) - believe the key factor influencing house prices over the next 12 months will continue to be the supply - or more accurately the lack of supply - of new housing. A total of 88% of agents believe current residential property prices are expensive or very expensive – up 5% since January – while just 12% believe they are currently fair value, according to the latest SCSI Residential Mid-Year Market Monitor. The report also found that affordability challenges have intensified for first time buyers around the country and a couple on a combined income of €107K who want to buy an averagely priced new three-bed semi-detached house and have the 10% deposit will afford to buy in only one of five locations. In the two most expensive counties, Wicklow and Kildare, the couple will face shortfalls of €65,000 and €22,000 respectively for that house type. The average purchase price of a new three-bed semi in Meath is €482k; in Kildare €500k and €548k in Wicklow while in Cork it's €459k and €485k in Galway. When asked where they believe we are in the market cycle, 60% of respondents believe prices are increasing but will level off soon – while 18% believe they have peaked and should start to decline. Gerard O'Toole, President of the SCSI, said the report indicated mounting concern over the supply situation and by extension with a recent slowdown in home construction. 'Fifty-one percent of agents in our survey cite lack of supply as the main factor driving price inflation, up from 46% a year ago. In 2023, the figure was 35%, so we can really see the impact the lack of supply is having on house prices. 'At the same time, 70% of agents are reporting low stock levels of new and second-hand homes, again underscoring the persistent challenge of limited supply in the market.' 'Over the past five years more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market.' 'With the ESRI forecasting that 37,000 new homes will be built this year, well short of the Government's target of 41,000, the urgent need to address infrastructural shortcomings and for the Housing Activation Office to become fully operational as soon as possible cannot be overstated.' 'The other main factors, which our members believe are influencing price movements include the state of the economy (20%), while a further 16% said the continued availability of government support schemes such as Help to Buy and First Home Scheme are influencing house prices.' 'Looking at where we are in the market cycle, 78% of agents believe prices will level off soon or have already peaked. In the medium to long term, the only way to ensure prices stabilise is to ramp up supply' Mr O'Toole said. Sign up to the Irish Mirror's Courts and Crime newsletter here and get breaking crime updates and news from the courts direct to your inbox.
Irish Independent
11-07-2025
- Business
- Irish Independent
Home economics: As First Home Scheme limit has been raised, can we avail under our existing mortgage terms or must we reapply?
Our expert answers your property finance questions Question My girlfriend and I are buying a house in a new development in Co Wicklow and were delighted to see that the limit for the First Home Scheme was raised to €500,000, which makes things easier for us.
Irish Independent
08-07-2025
- Business
- Irish Independent
First Home Scheme: Almost 3,700 homes bought using State's shared equity scheme since its launch three years ago
Close to 3,700 homes have been bought using the First Home Scheme since it was launched this month three years ago, and thousands more have been approved to use the scheme. The First Home Scheme is a €740m fund set up to help first-time buyers bridge the gap between their mortgage, deposit and the price of a new home. It is part of the Government's Housing for All strategy. Scheme bosses said €240m in support was provided for the purchase of 3,691 homes since it launched in July 2022. There was a 22pc increase in homes bought using the scheme in its third year compared with the previous year, latest figures show. Buyers in Dublin, Kildare, Cork, Meath and Wicklow represent the biggest proportion of users of the scheme. It only applies to new properties, including self-builds and apartments. Under the scheme, the State provides an interest-free equity for a six-year period for a stake of up to 30pc in the home. There are maximum property-price ceilings for each local authority area. The scheme is a joint venture between the State and three banks – currently AIB (including subsidiaries EBS and Haven), Bank of Ireland and PTSB – and remains open to other authorised mortgage lenders in the Irish market joining it. The latest update shows continued strong interest in the scheme, with 7,605 buyers approved to use it. More than 17,300 potential buyers or self-builders have registered their interest in it. The average price for homes purchased or built using the scheme is €386,000. The average support being provided by the First Home Scheme in these cases is around €66,000. This works out at 17pc of the average purchase price. We're encouraged by the level of appetite among first-time buyers More than six out of 10 of those using the shared equity arrangement are also availing of the Help to Buy scheme, an initiative that gives prospective house buyers a tax rebate of up to €30,000 when buying new-build properties. Most of the live approvals have been for buyers in Dublin, Cork, Kildare, Meath and Wicklow, with the remaining 28pc spread across the other 21 counties. Chief executive of the First Home Scheme, Michael Broderick said: 'As we enter our fourth year in business, we're encouraged by the level of appetite among first-time buyers who can see how the scheme can make home ownership possible for them.' He said there was capacity to help more first-time buyers, as well as people who want to build their own homes and tenants who want to buy their current homes from their landlords. 'We'd encourage anyone looking to buy or build their first home to check out what we offer,' he said. Earlier this month, the price ceilings that apply in 16 local authority areas were increased. Mr Broderick said this was to reflect local market conditions and that these changes will allow even more buyers to qualify for the scheme. The raising of the price ceiling for the First Home Scheme will mean every new house valued at €500,000 or less in a private development in Dublin city or county, or in Wicklow, will now be eligible for the scheme.
The Journal
07-07-2025
- Business
- The Journal
Focus on new build delivery before First Home scheme expansion to second-hand homes, says Martin
TAOISEACH MICHEÁL MARTIN has dampened expectations that the First Home Scheme will be extended to second-hand homes in the short-term, stating that the focus now must be on new build delivery. The First Home Scheme is a shared equity scheme for first-time buyers that involves the government and participating banks paying up to 30% of the cost of the home in exchange for a stake in it, which can later be bought back by the home buyer. Currently, the scheme is only available to first-time buyers who are purchasing a newly built property or building their own. The programme for government includes a commitment to expand the scheme for first-time buyers of second hand homes, but the Taoiseach told The Journal 'the exact timeline by the time it will happen is open, it is not decided yet'. Tempering expectations that there could be an announcement on it in the upcoming budget, the Taoiseach said the government's focus right now is 'supply, supply, supply and new builds'. 'Do we concentrate on getting new builds first? I mean, it's on the agenda, but we have to get the new builds, the incentives have to be towards new builds. And the price of housing is increasing. So would it [expansion to second-hand homes] add more to that?' the Taoiseach said. Advertisement Previously, Housing Minister James Browne told The Journal that concerns had been raised that extending the First Home Scheme to second-hand homes could increase house prices. The Taoiseach confirmed this was the case, stating 'some have'. 'That's a fact that we have to look at. But to be honest with you, the priority really is to try and get more new builds started, and to get the private sector building more new builds. The state is doing all the heavy lifting at the moment,' he said. Martin said an increased the allocation of €700 million was put into housing this year, adding that he thinks more money will need to be pumped in to it by end of the year so as to allow for more funding to be allocated to housing schemes. He reiterated his disappointment with last year's final housing delivery figures, stating that the 50,000 target per year has to be met due to the rising population. However, he also questioned whether the target of 50,000 is high enough. 'Whether that deals with the population growth is still an open question,' he said, stating that the Irish population has gone up a third in two decades. 'That's massive. So housing supply is the key and that's why we have taken the measures we've taken so far… they're all building blocks,' said Martin. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Extra.ie
02-07-2025
- Business
- Extra.ie
What does the raised ceiling prices in the First Home Scheme mean for potential homeowners?
Thousands of potential homeowners are set to benefit following the latest changes made the the First Home Scheme. The shared equity scheme was first launched in July 2022 to help bridge the gap for those with income to low to afford a mortgage big enough for their very first home. The government and participating banks provide an interest-free stake of up to 30% as a means of helping people get onto the property ladder. Thousands of potential homeowners are set to benefit following the latest changes made the the First Home Scheme. Pic: Getty Images The scheme has a twice-yearly review of the price ceilings that apply to qualifying homes with the latest review leading to the price ceiling being raised in Dublin city and county as well as Wicklow. Now, houses in the Dublin City and Wicklow County area valued at up to €500,000 will be eligible to qualify for the scheme, bringing the limit to the same level as apartments in the area. 16 of Ireland's 31 local authority areas have raised the price ceiling limits. Now, houses in the Dublin City and Wicklow County area valued at up to €500,000 will be eligible to qualify for the scheme, bringing the limit to the same level as apartments in the area. Pic: Shutterstock The 740m scheme applies to new properties including self-builds and apartments. Renters who want to buy their home for their landlord who is looking to sell are also eligible for the sceme. The Irish Independent report that many of the 16 local authority areas will see an increase of €25,000 in the relevant scheming following the bi-annual review. Local authority areas seeing an increase are Clare, Fingal, Louth, Sligo, Cork County, Galway County, Mayo, South Dublin, Dublin City, Kerry, Meath, Wexford, Dun Laoghaire-Rathdown, Kildare, Offaly and Wicklow. The changes, which came into effect on Tuesday, mean more first-time buyers will qualify for the scheme. In order to qualify, your mortgage must be with a participating lender with AIB, Bank of Ireland and Permanent TSB all on board with the scheme alongside EBS and Haven. First-time buyers are told to have a deposit of a minimum of 10% which would be 10% of the property's purchase price. Recipients of the Help to Buy Scheme can put that scheme towards the deposit if required.
