Tánaiste Leo Varadkar has said the help-to-buy scheme for the first time buyers in Ireland will be extended to a little bit longer, reports The Irish Times. He also confirmed that the details of the extension will be there in the next budget due to be presented in October.
Help-to-buy scheme allows those buying or building new homes for the first time to claim relief of income tax and deposit interest retention tax (Dirt) paid over the previous four years up to a maximum of €30,000 or 10 per cent of the purchase price of the property. This scheme is due to expire by the end of the year.
The Tánaiste’s comments come in the backdrops of a report by Daft.ie suggesting that the house prices in Ireland has risen 9% in the last year and the average rise is €24,000 across the country. Vardakar said the price hike was unwelcome and it would badly affect those trying to buy a house for the first time and those who want to upgrade because they have a growing family.
Asked if there will be an extension of help-to-buy in the budget he replied: “Help-to-buy is there, and it’s going to remain in place for a little bit longer.
“There’ll be an announcement on budget day on the detail of that — but it is going to remain in place.”
Mr Varadkar added: “While some people criticise it as a measure that can cause house price inflation, I think most people will see it as a measure where people get their taxes back, and they can put that towards their deposit.”
He said the scheme has helped more than 20,000 people “to get that deposit together and buy their first home and I think that’s why we would intend to retain it for a little bit longer”.
According to him, a number of factors have contributed to the house price increase including the surplus savings of the people due to the pandemic and a decrease in property construction. The construction material prices have also increased significantly.