Help-to-Buy Scheme

Future in doubt as more buyers feel the squeeze

On reading a few articles over the past week in the National Papers about the Help-to-buy Scheme, I thought it would be a good idea to put a few points together on this topic.

“Help-to-buy future in doubt as more buyers feel the squeeze” is one of the captions in The Irish Independent recently.

The future of the Help-to Buy Scheme remains uncertain as Ministers refused to say if they want to see it extended in its current form in the Budget. It comes as more people on low and middle-incomes are being squeezed out of the housing market.

The grant of up to €20,000 for first time buyers purchasing new-build homes is due to expire at the end of year. Finance Minister Paschal Donohoe will announce news on its future in the Budget.

There are have been reports that Mr Donohoe is considering changes to the cap on the value of a property which could hit first time buyers in urban areas if it is lowered. House prices have risen so much that many buyers now need an income over €80,000 to get approved for a mortgage and a large proportion of first time buyers now have joint incomes.

Separately, the Cabinet is set to decide on extending the Abhaile Advice Service for people in mortgage arrears for another 3 years at a cost of over €17m. The Cabinet are expected to bring a memo to Government outlining the plans for the service, which has provided advice to more than 12,000 households.

*above content sourced from Irish Independent