The First Home Scheme: Bridging the Affordability Gap for First Time Buyers
2023-07-18The First Home Scheme (FHS) also known as the Shared Equity Scheme was introduced in July 2022 to provide financial support to first time buyers, helping them bridge the affordability gap between their deposit and mortgage, and the price of a new-build home.
Since its launch, the FHS has undergone significant developments, expanding its reach by raising property price ceilings and catering to tenants facing termination of lease.
Since its launch, the FHS has undergone significant developments, expanding its reach by raising property price ceilings and catering to tenants facing termination of lease.
Property Rules
The FHS is available for newly built houses and apartments in a private development in the Republic of Ireland. For FHS purposes, 'duplexes' are classified as houses and 'new build' includes properties that have been completed and made habitable within the last 3 years but have never been lived in.
Eligible properties are subject to property purchase price ceilings based on the local authority area in which the property is located. To qualify for the FHS, the purchase price of your property must not exceed the specified ceiling for that area.
Property price ceilings are regularly reviewed to ensure that they align with average prices in the market. Notably, since the FHS was launched, house price ceilings have risen from €450,000 to €475,000 in Dublin City, Cork City, Dún Laoghaire-Rathdown, Fingal, and South Dublin. Price ceilings for all properties in Galway County, Kilkenny County, Westmeath County, Louth, Limerick City and County have increased from €350,000 to €375,000. Furthermore, to date, the price ceilings for eligible properties in Meath County have increased from €350,000 to €425,000.
Currently, the property price ceilings are as follows:
Local Authority Area House Price Ceilings Apartment Price Ceilings
Eligible properties are subject to property purchase price ceilings based on the local authority area in which the property is located. To qualify for the FHS, the purchase price of your property must not exceed the specified ceiling for that area.
Property price ceilings are regularly reviewed to ensure that they align with average prices in the market. Notably, since the FHS was launched, house price ceilings have risen from €450,000 to €475,000 in Dublin City, Cork City, Dún Laoghaire-Rathdown, Fingal, and South Dublin. Price ceilings for all properties in Galway County, Kilkenny County, Westmeath County, Louth, Limerick City and County have increased from €350,000 to €375,000. Furthermore, to date, the price ceilings for eligible properties in Meath County have increased from €350,000 to €425,000.
Currently, the property price ceilings are as follows:
Local Authority Area House Price Ceilings Apartment Price Ceilings
Cork City €475,000 €500,000
Dublin City
Dún Laoghaire-Rathdown
Fingal
South Dublin
Galway City €425,000 €450,000
Limerick City and County €375,000 €450,000
Waterford City and County €350,000 €450,000
Local Authority Area Price Ceilings (all properties)
Wicklow County €475,000
Cork County €425,000
Kildare County
Meath County
Galway County €375,000
Kilkenny County
Louth County
Westmeath County
Laois County €350,000
Carlow County €325,000
Cavan County
Clare County
Donegal County
Kerry County
Leitrim County
Longford County
Mayo County
Monaghan County
Offaly County
Roscommon County
Sligo County
Tipperary County
Wexford County
Eligibility Criteria for Applicants
To be eligible for the FHS, you must be over 18 years old, and you must be a first time buyer. You may also be eligible for the FHS if you have previously owned a property but no longer have a beneficial interest in it due to relationship breakdown or insolvency/bankruptcy.
In March 2023, the FHS expanded its eligibility requirements to include tenants who have received a Notice of Termination and seek to purchase their rental property from their landlord. Known as the Tenant Home Purchase Scheme (THPS), this extension to the FHS allows tenants to bridge the funding gap between their mortgage and deposit, making it possible to buy their current rental home.
The eligibility criteria for the THPS align with those of the FHS, with some key distinctions:
In March 2023, the FHS expanded its eligibility requirements to include tenants who have received a Notice of Termination and seek to purchase their rental property from their landlord. Known as the Tenant Home Purchase Scheme (THPS), this extension to the FHS allows tenants to bridge the funding gap between their mortgage and deposit, making it possible to buy their current rental home.
The eligibility criteria for the THPS align with those of the FHS, with some key distinctions:
- THPS applicants must include a valid Notice of Termination with their application. This written notice, served by the landlord, must meet all the requirements outlined by the Residential Tenancies Board. FHS applicants are exempt from this requirement.
- The THPS permits the purchase of second-hand properties, while the FHS exclusively covers newly built properties.
- THPS applicants cannot avail of the Help to Buy Scheme (HTB), as the HTB is solely applicable to newly built and self-built properties. On the other hand, FHS applicants can leverage the HTB.
To apply for the FHS, you must first assess your eligibility using the FHS Eligibility Calculator available at https://www.firsthomescheme.ie/eligibility-calculator/. Once eligibility is confirmed, you can proceed to register and submit your application through the FHS website.
The enhancements made to FHS offer welcome relief to first time buyers who are eager to stop paying excessive rent and need financial support to accelerate their transition into homeownership. If you require additional information on the FHS (and HTB), don't hesitate to contact us.
Robyn Jacobs
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