First Home Scheme must be expanded to include second hand houses – Cummins

The inclusion of older second hand properties must be considered for the First Home Scheme if prospective buyers are to be given every chance to buy a home, a Fine Gael Senator said.

“As we approach the first anniversary of the introduction of the First Home Scheme, a review of properties available through the scheme must be conducted to ensure prospective buyers are being given every opportunity to own a home,” said Fine Gael Spokesperson on Housing, Senator John Cummins.

“Since its launch in July 2022, and up until the end of May, 1700 eligibility certs were issued to applicants for the First Home Scheme. I believe that is a solid start for this new shared equity scheme, which enables purchasers of new build houses and apartments to bridge the gap between the maximum mortgage they can achieve and the cost of the property. Importantly this equity can be fully bought out at a later point when the purchaser is in a better position to do so.

“When the scheme began, there was an undertaking to review its progress and uptake levels twice a year. Through the first review the maximum price ceilings were increased in many counties to reflect market realities and this resulted in a wider stock of properties available to prospective purchasers”

Senator Cummins explained: “Under the current criteria of the scheme, the First Home Scheme can potentially fund up to 30% of the price of a new property (subject to price caps in each county), but the property to be funded must be a newly built house or apartment. Following recent changes, the scheme is now accepting applications from eligible tenants who have received a notice of termination and are looking to purchase the home they are currently renting. This is referred to as The Tenant Home Purchase Scheme (THPS).

“While this is helpful to renters who have received valid notices of termination, it is unfair on others who want to buy and are confined to looking at new homes only. I want to ensure that the widest range of options are open to prospective purchasers.” Senator Cummins continued.

“We’ve seen the success of the other schemes such as the Vacant Property Refurbishment Grant, which allows homebuyers to consider older vacant and derelict homes in need upgrading. However, now is the time for proper consideration to be given to expanding the stock of housing that qualifies for eligibility through the First Home Scheme. As it stands, renters and those seeking new builds are being favoured. This scheme will really reach its full potential when second hand homes are also on the table for homebuyers.”