A recent quarterly update from the First Home Scheme (FHS) reveals how the Scheme has shown remarkable progress in assisting first time buyers with bridging the gap between their mortgage, deposit, and the price of their new home.

Since its launch in July 2022, the First Home Scheme has approved 4,850 buyers, with over 1,900 homes purchased using FHS funding. The first half of this year saw a 107% increase in homes bought through the FHS compared to the same period in 2023. This reflects the effectiveness of the FHS in helping first time buyers get onto the property ladder.

Creating Opportunities for First Time Buyers

The First Home Scheme continues to evolve, and in 2023, it introduced two significant expansions – the Tenant Home Purchase Scheme (THPS) and the Self-Build product. The THPS allows eligible first time buyers who have received a Notice of Termination to purchase the home they are renting with FHS assistance. The Self-Build product offers funding to those building their own homes who lack sufficient funds when combining their deposit and mortgage. These additional options create new opportunities for first time buyers to access necessary funding.

To further enhance accessibility, the First Home Scheme recently increased its property price ceilings in 14 Local Authority Areas. This adjustment means more homes now qualify for FHS funding. New homes in Ireland worth up to €350,000 are eligible for funding, with ceilings reaching up to €500,000 in high-demand areas. This increase means more homes can now be purchased under the Scheme, addressing previous eligibility issues due to price ceilings.

Updated Property Price Ceilings

Impact of the First Home Scheme

The average purchase price of homes bought or built under the FHS is €379,000, with an average support of €66,000 per home. This substantial support, amounting to approximately 17% of the average purchase price, has made homeownership more accessible for first time buyers. Moreover, 67% of FHS applicants are also using the Help to Buy Scheme(HTB) and combining the supports to receive around €100,000, making homeownership even more achievable.

The recent increase in property price ceilings, alongside a growing interest in the First Home Scheme, has made this scheme an indispensable tool for first time buyers. By providing support, the FHS is making the path to homeownership more accessible and realistic for many. If you're a first time buyer looking to navigate the complexities of buying your first home, the First Home Scheme could be the perfect solution for you.

For more information and support with your mortgage application, contact us today. Our team is here to guide you every step of the way, ensuring you make the most of the opportunities available through the First Home Scheme and other supports.