Minister for Finance statement on the possible extension of the Help-to-Buy scheme

The Minister states:

The primary aim of the Help to Buy scheme is to encourage additional supply of new houses by supporting demand. It also assists first-time purchasers with the deposit they need to buy or build a new home.

The scheme provides a refund of Income Tax and Deposit Interest Retention Tax paid in Ireland over the previous four years, subject to the limits outlined in the legislation.

Based on the latest available data from 31 March 2025, it has supported almost 55,000 individuals or couples to buy their own home.

In addition to the conditions laid down in the scheme, including that the property is occupied as the sole or main residence of a first time purchaser, the scheme defines a 'qualifying residence'. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used, or suitable for use, as a dwelling. If the property was non-residential, but has been converted for residential use, it may qualify for Help to Buy. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for the scheme.

In relation to second-hand properties generally, an increase in the supply of new housing remains a priority aim of Government policy. As mentioned, the Help to Buy scheme is specifically designed to encourage an increase in demand for affordable new build homes in order to encourage the construction of an additional supply of such properties.

The Help to Buy scheme does include a claw-back provision where the minimum occupation period of five years is not met. This provision is not related to the scheme's eligibility rules, nor is it related to the definition of a 'qualifying residence.' As such, while a claw-back has occurred in relation to a property previously considered a 'qualifying residence,' this has no effect on whether the property meets the definition of a 'qualifying residence' for the purpose of the scheme. A property which has previously been occupied is a second hand home and it would not qualify for the scheme, and it would not add to the supply of new housing stock.

It should, of course, also be borne in mind that the Government has put in place a broad range of other measures, in addition to Help to Buy, which support first time buyers. These include the First Home scheme and the Local Authority Affordable

Purchase scheme.

The Programme for Government commits to the retention and revision of the Help to Buy scheme. As the Deputies will appreciate, any revisions to the scheme would have to be considered as part of the annual Budget and Finance Bill processes and take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market.