Thousands apply for State’s shared-equity scheme in bid to buy their first home

However, the First Home Scheme reported that just 1,900 of these have been able to buy home using the scheme as high prices and a shortage of properties for sale make it hard to purchase a home.

The First Home Scheme was set up to help first-time buyers bridge the gap between their mortgage, the deposit and the price of a new home.

It is a joint venture between the State and AIB – including subsidiaries EBS and Haven – Bank of Ireland and PTSB. It has €400m in funding.

Under the scheme, the State provides an interest-free equity ;stake for a six-year period for up to 30pc in the home.

There are maximum property price ceilings for each local auth­ority area.

The scheme has now been in operation for two years this month.

There has been a doubling in the number of homes bought using the scheme this year compared with last year.

Some €126m in support has provided to scheme users to buy 1,914 homes so far, it said.

Todays News In 90 Seconds – July 11 2024

In an update, it said it is seeing continued strong interest in it, with 4,850 buyers approved and 1,914 homes already bought using the scheme.

The pipeline of applications continues to grow, with the number of new applications in the first six months of this year 43pc higher than the same period last year.

Some 610 applications are currently being processed, with approvals expected to issue shortly in the majority of these cases.

A total of over 10,600 potential buyers have registered their interest in the Scheme, with over 3,139 new expressions of interest submitted in H1 2024.

The average purchase price for homes purchased, or build cost for homes built, using the scheme is €379,000.

The average support being provided by the First Home Scheme in these cases is around €66,000, which works out at 17pc of the average purchase price.

The figures show 67pc of First Home Scheme users are also availing of the Help-to-Buy scheme.

Most of the approvals have been for buyers in Dublin, Cork, Kildare, Meath and Wicklow, with the remaining spread across the remaining 21 counties throughout Ireland.

Housing Minister Darragh O’Brien said that in its two years of operation the First Home Scheme has proved hugely popular in bridging the gap for first-time buyers between the finance they have and the finance they need to buy their own home.

First Home Scheme chief executive Michael Broderick said it was clear the scheme is resonating well with new buyers.

He said his job is to continue to provide fast turnarounds, clear information and a high-quality service.

There has been criticism of the scheme with claims it is helping to inflate the price of homes.

However, a report commissioned by First Home Scheme and carried out by KPMG, found no evidence to suggest it is inflating property values, as critics had suggested.

Combing the First Home Scheme and the Help-to-Buy means buyers can get support of around €100,000 from the State to buy a new home.