Half of shared equity scheme grants used for homes in Dublin and Kildare

Half of shared equity scheme grants have been used for homes in Dublin and Kildare in the first three months of the Government’s housing measure.

The €400 million First Home Scheme was set up to help first-time buyers afford to buy a home amid high housing costs and strict borrowing constraints.

Under the scheme, contained in the Government’s landmark Housing for All plan, the State and banks offer 30% of the cost of a first-time buyer’s new home in exchange for a stake in the house.

This can be bought back at a later date.

The first quarterly report of the scheme shows that a total of 508 buyers were approved since July.

Two thirds of those deemed eligible for the scheme were buyers in counties Dublin, Kildare, Meath and Wicklow, with the remaining 34% spread across 19 counties.

The most approvals were granted in Co Kildare, where 132 buyers were deemed eligible, 26% of the total of those deemed eligible.

A further 203 applications are being processed, with most approvals expected to be issued shortly.

Some 823 individual buyers and 1,039 couples have registered their interest in the scheme, a total of 1,862 potential buyers.

Opposition parties have heavily criticised the measure as a benefit for big developers, while the ESRI think tank warned that it would most likely drive up house prices.

Minister for Housing, Local Government and Heritage Darragh O’Brien said he was encouraged by the interest and the take-up of the scheme.

“We are now seeing people buy and move into their new home as a result of the First Home Scheme and we will see thousands more over the coming years,” he said.

“Through this scheme we are making home ownership easier for those who are finding it just out of reach. We know that the overwhelming majority of renters would much rather own their own home and for most they would pay less in monthly repayments for the home than in rent.

“This scheme helps those who are stuck in that rental trap, it gives them a helping hand towards homeownership. The fact that people already have keys to their new home proves this is working.”