Michael Moynihan (Cork North West, Fianna Fail)
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62. To ask the Minister for Housing, Planning, and Local Government if he will report on the operation of the first home scheme to date in 2024; and if he will make a statement on the matter. [24325/24]

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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Will the Minister report on the operation of the first home scheme to date in 2024 and make a statement on the matter?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I thank Deputy O'Sullivan. The first home scheme is a radical initiative that the Government introduced to bridge the gap in finance for those with mortgage approval and a deposit but who are still short in purchasing a new home. The State is stepping in and assisting them. The average equity we are providing across the country is €66,000, so it is a significant amount.

If we take that together with the help-to-buy grant, the average amount available to first-time buyers is approximately €100,000. Many people on middle-income salaries of €40,000, €50,000 or €60,000 who felt they would be unable to buy a house can now do so with the help of these schemes.

Last year, more than 4,000 individuals and couples were approved under the first home scheme. That is 4,000 households. Some 75% of those approvals have issued in Dublin, Cork, Kildare, Meath and Wicklow. More than 800 were approved in quarter 1 of this year alone, which is a 40% increase on the same three-month period of last year. It shows that people want this support and are using it. This evening, we are holding another public meeting about the assistance being provided by the Government to first-time buyers. Everyone knows where the main Opposition party stands on these assistances. It would abolish all those schemes.

I welcome the increased demand for the first home scheme. It is a key measure. I meet people who have mortgage approval and are not sure about the help-to-buy grant. I tell them they are eligible to get €30,000 of their own tax back for their deposit. We can now provide an equity stake that is not a second mortgage and attracts no interest from year zero to year 6. People can buy it at any stage. That is a game-changer for a significant number of families and that is why we intend to invest a further €40 million this year, which will be matched by the three partner banks. A further €80 million will be going into the first home scheme.

I welcome the Deputy’s support. As he knows, we expanded the scheme to one-off self-builds, which is important in counties such as the Deputy’s county of Cork.

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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I hate to sound like a broken record but a lot of what I am going to say was said during the debate on the previous question. The more the Minister’s critics decry the interventions he is making, the more it proves he is going in the right direction. We have spoken previously about the relevant figures. When he came into office, there had been a decade of undersupply. We did not build enough houses for many years. The numbers are now growing steadily. The one fundamental thing that the first-home scheme provides for people is choice. That choice was not available to many people before the launch of this scheme. That is the fundamental thing the scheme does. Instead of people scraping together 90% or 85% of a mortgage, they can achieve that with perhaps 70% of the amount that is required.

It is imperative to reiterate that the scheme is there and up and running. More people are becoming aware of it and the uptake is growing. At our recent Fianna Fáil Ard-Fheis, the Minister reiterated his intention, if he were to remain in office after the next election, to retain the scheme. Perhaps he would speak to that.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I thank the Deputy. The scheme is working. We have to acknowledge that schemes such as this one need to be supported because they help people to buy a home. The Deputy and my Government colleagues and I support homeownership. We want to help people who are working hard to own a home. That is why I would like the scheme to continue. It is working for people.

The take-up rate has increased by 40%, year on year, as I said. Interestingly, we are also using the scheme to help people who are purchasing a home from their landlord. It is the first time we have used this scheme for second-hand properties when a notice to quit is issued and the tenants are short of finance. The first home scheme is helping in such circumstances. We have had some 160 applications specifically for that scenario to allow people who are renting to buy the home they are in. There have also been 60 applications for self-builds. For new builds, there are significant increases for people. As I said, between the first home scheme and the help-to-buy grant, an average of €100,000 in support is available. People who are short of the money required can get these supports to help to buy a home.

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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I concur with the Minister. Many people in the industry would say that without the likes of the first home scheme and all the other initiatives we have spoken about, homes would be unaffordable for a certain cohort. I support the scheme and am fully with the Minister.

Perhaps he could speak to his intention to keep the scheme going if the current Government is re-elected and if he remains in office for the coming years. Perhaps he would speak to his intentions, going forward.

I reiterate that the scheme provides choice for people. We get knocked back an awful lot, as we saw earlier this morning, but when schemes are working, the more the Minister’s opponents decry what he is doing, the more success he is having.

Thomas Gould (Cork North Central, Sinn Fein)
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I raised a matter with the Taoiseach yesterday in respect of equity. I spoke to a gentleman who came to see me and who is looking to buy a house. He has good savings and a full-time job. He has two kids. He is separated and trying to put a roof over his head. He is trying to use the affordable housing scheme and the shared equity scheme. I am seeking clarity. What I have been told is that the maximum available equity is €100,000 or 22.5%. That is what Cork County Council has told me in respect of the affordable home schemes in Whitechurch and White’s Cross. I would love to help this person. The Minister and I can disagree on policy and other matters but at the end of the day, this is a man with two kids who is living with his parents. My question is about equity. The legislation states that the maximum equity available is 40%. We are being told that the Department has sent out a circular or has instructed local authorities that the maximum is €100,000 or, in some cases I am dealing with, 22.5%. I am looking for clarity on that point.

Bernard Durkan (Kildare North, Fine Gael)
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I acknowledge the progress the Minister is making. There is a multiplicity of schemes, some of which are more helpful than others. Would it be possible to look at the schemes in their totality with a view to discontinuing some and adding more of an incentive to other schemes that might have a bigger impact?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Bhí mo chomhghleacaí, an tAire Stáit, an Teachta Noonan, ag labhairt liom faoi na daoine atá sa Ghailearaí ó Ghaelscoil Osraí i gContae Chill Chainnigh. Cuirim fáilte rompu go léir go dtí Teach Laighean inniu.

I ask Deputy Gould to give the details regarding the case he outlined and we will look at it for him. I am happy to help. The equity amount under the affordable housing fund is €100,000 for affordable purchase and €150,000 for cost rental. I would need to see the details of the case in question.

To respond to Deputy O’Sullivan, it is important we look forward, particularly in respect of the first home scheme and other supports. This Government is committed to extending the scheme further and that would be my intention if I were in government following the next election. It is helping so many people. We brought it in on a three-year basis. As the Deputy knows, the Minister for Finance, Deputy Michael McGrath, and the Government have approved the extension of the help-to-buy grant to the end of 2025. Whenever campaigning starts for the general election, there will be a clear contrast because this Government is offering first-time buyer supports and our colleagues opposite would abolish them. It is important that people see that fundamental difference.