The Government will not expand the First Homes scheme to cover second-hand house purchases in next month’s budget, with the Taoiseach confirming the focus will remain on boosting new housing supply.
Speaking in New York, Micheál Martin ruled out extending the scheme for first-time buyers to include existing properties, despite a Programme for Government commitment to expand supports to second-hand homes and extend the initiative to 2030.
“I think, in this budget, the priority will be on new builds, and to try and target all the resources to new builds,” Mr Martin said. “I don’t necessarily see it in this budget.”
The Taoiseach emphasized that the Programme for Government spans five years and “not everything can be implemented in year one or in the budget.” The issue had been raised repeatedly during last year’s election campaign, particularly by government backbenchers, and was under consideration as recently as this summer.
Housing Minister James Browne is currently negotiating with Public Expenditure Minister Jack Chambers on various housing measures, with priority given to removing families from emergency accommodation. Mr Martin noted that some families in emergency housing decline offers due to location or property type preferences.
The Taoiseach confirmed upcoming meetings with local authority CEOs alongside Minister Browne and Tánaiste Simon Harris to address land rezoning concerns. The Government has threatened legislative intervention if councils refuse to rezone sufficient land for housing development.
“We cannot deal with the housing need if we don’t rezone more land,” Mr Martin said, noting that some council executives are now indicating willingness to rezone following government pressure. He acknowledged viability gaps for brownfield sites but highlighted recent measures around rent pressure zones and apartment standards.
Tánaiste Simon Harris, also speaking in New York, warned that “the centre will not hold” if housing targets continue to be missed. Despite acknowledging that yearly targets can “falter,” as seen last year, he remained focused on the overall goal of delivering approximately 300,000 homes.
“This Government will have to show very significant progress in housing,” Harris said, expressing optimism that recent measures would “over time, significantly assist in supply.”
The decision to maintain focus on new builds rather than expanding support to existing properties represents a strategic choice to maximize new housing construction amid ongoing supply shortages and affordability challenges across the market.