Expansion of home loan scheme ‘significant’ – Taoiseach

Taoiseach Simon Harris has said an expansion of the local authority home loan scheme for first-time buyers, to include vacant and derelict buildings, will be “very significant” in bringing stock back into supply.

Minister for Housing Darragh O’Brien had sought Government approval to expand the local authority home loan for first-time buyers.

The loan is currently only available for homes that are habitable and does not cover renovation costs.

This morning, the Cabinet gave the green light to a new local authority purchase and renovation loan, which will be available within weeks.

This is an expansion of the local authority home loan scheme and will be open to all homes that are vacant and derelict.

These properties will also be in line to receive refurbishment grants.

The local authority home loan allows people to borrow up to 90% of the market value of a property.

The maximum house prices that qualify for these loans range from €275,000 to €360,000, depending on which county the home is located in.

Mr Harris said as well as increasing housing supply through building new homes, the Government also has to look at what other stock can be brought back into use.

“Is there vacancy in towns and villages across Ireland? Are there some derelict buildings, that if you allowed government grants and loans be used for, that could be turned into homes for families?”

He said bringing such properties back into use is good for towns, it’s good for villages and it’s good for families,” he added.

The Tánaiste said he believes the move will give “a further shot in the arm” to the housing sector.

Micheál Martin said as well as enabling home buyers to access finance, the scheme expansion will also “get more vacant and refurbished properties back into the housing market and back into habitation and occupation”.

“Already the schemes we have on vacant and derelict housing, for example, the grants that are available have been extremely popular and are working and are impacting on ending dereliction in certain towns and in certain areas and bringing properties back in to the housing market,” said Mr Martin.

Sinn Féin’s Spokesperson on Housing Eoin Ó Broin said his party had no objection to the changes.

However, Mr Ó Broin questioned its timing during an election week and said it did not solve the underlying problem, which is a shortage of social and affordable homes.

Additional reporting Míchéal Lehane