Cork TD in call for first home scheme to apply to second-hand properties

A Cork TD has called on the housing minister to implement a programme for Government commitment to allow the first home scheme (FHS) to cover second-hand homes.

The FHS, which was launched in July 2022, is a shared equity scheme.

It was designed to help bridge the gap for eligible first-time buyers between their deposit and mortgage, and the price of their new home.

Under the scheme, the State will pay up to 30% of the market value of a home in return for a stake in the ownership of the property.

Scope

In April 2023, the scope of the scheme was extended to include the tenant home purchase scheme for renters who wished to buy their home from a landlord who had issued them with a notice of termination and has indicated a wish to sell.

In September of the same year, the FHS was also expanded to include self-builders who have a site but do not have the funding to complete the construction.

Responsibility for the operation and management of the FHS falls to the First Home Scheme Designated Activity Company, on behalf of its shareholders: the State, Allied Irish Bank, Bank of Ireland, and Permanent TSB.

The scheme is currently available only for the purchase for new properties.

However, the programme for Government contained a commitment that it would be made available to people wishing to purchase second-hand properties.

Commitment

Speaking in the Dáil, Séamus McGrath, Fianna Fáil TD for Cork South Central, asked housing minister James Browne when he intended to implement that commitment.

Responding to Mr McGrath, Mr Browne said he was conscious of the commitment to work with the banks to expand the first home scheme to first time buyers of second-hand homes.

“This is being examined by my department,” said the minister.

“I have requested the first home scheme to undertake the required analytical and technical work to examine the potential for such an expansion as soon as possible,” Mr Browne added.

Speaking to The Echo about the FHS, Mr McGrath said that he was glad that the scope of the scheme was being expanded to include second-hand properties, and that work was currently ongoing to ensure that expansion would come about.

“It will be an important financial help for first time buyers, and I will continue to pursue the issue until it is operational,” he said.