Taoiseach Micheál Martin has cooled expectations that the First Home Scheme will be extended to second-hand homes in the near term, citing concerns about potential price increases and emphasizing the need to prioritize new housing construction.
The shared equity scheme currently allows first-time buyers to purchase newly built properties with government and bank assistance covering up to 30% of costs in exchange for a stake that can later be bought back. While the programme for government includes plans to expand the scheme to second-hand homes, Martin said the timeline remains undecided.
Speaking to The Journal, the Taoiseach ruled out an announcement in the upcoming budget, stating the government’s focus is “supply, supply, supply and new builds.” He questioned whether expanding the scheme to existing homes could further inflate house prices, which continue to rise.
Housing Minister James Browne previously expressed similar concerns about the scheme’s expansion potentially driving up property values. Martin confirmed these worries are being actively considered as the government weighs its options.
“The priority really is to try and get more new builds started, and to get the private sector building more new builds. The state is doing all the heavy lifting at the moment,” Martin said. He noted that housing allocation increased by €700 million this year and suggested more funding may be needed.
The Taoiseach expressed disappointment with last year’s housing delivery figures, emphasizing that the 50,000 annual target must be met due to population growth. However, he questioned whether even this target is sufficient, noting Ireland’s population has increased by a third over two decades, describing the growth as “massive.”