HOUSING MINISTER JAMES BROWNE has said concerns have been raised that extending the First Home Scheme to second-hand homes could increase house prices. 

During the election, the former housing minister Darragh O’Brien along with Taoiseach Micheál Martin spoke in favour of expanding the scheme to include second hand homes. 

Fine Gael also pledged to broaden the First Home Scheme so that first-time buyers purchasing a second-hand home are eligible for the support.

The programme for government includes a commitment to expand the scheme for first-time buyers of second hand homes, while also promising to increase targets and extend the supports out to 2030. 

However, the housing minister told The Journal that there are “different views” on expanding the scheme to include second-hand homes, stating that it is currently being examined as part of the government’s new housing plan, which is due to be published in July. 

“Some people feel that it would actually increase the prices for those properties. So we’re examining it. It’s not something that’s going to be done in the immediacy, but it is examined as part of the new housing plan,” said Browne. 

The First Home Scheme is a shared equity scheme for first-time buyers that involves the government and participating banks paying up to 30% of the cost of the home in exchange for a stake in it, which can later be bought back by the home buyer.

Currently, the scheme is only available to first-time buyers who are purchasing a newly built property or building their own.

Several opposition parties have been critical of the First Home Scheme, arguing that the shared equity approach causes housing price inflation.

Sinn Féin said during the election that it would end the First Home Scheme if in power.