TAOISEACH MICHEÁL MARTIN has dampened expectations that the First Home Scheme will be extended to second-hand homes in the short-term, stating that the focus now must be on new build delivery.

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.

The programme for government includes a commitment to expand the scheme for first-time buyers of second hand homes, but the Taoiseach told The Journal “the exact timeline by the time it will happen is open, it is not decided yet”.

Tempering expectations that there could be an announcement on it in the upcoming budget, the Taoiseach said the government’s focus right now is “supply, supply, supply and new builds”.

“Do we concentrate on getting new builds first? I mean, it’s on the agenda, but we have to get the new builds, the incentives have to be towards new builds. And the price of housing is increasing. So would it [expansion to second-hand homes] add more to that?” the Taoiseach said. 

Previously, Housing Minister James Browne told The Journal that concerns had been raised that extending the First Home Scheme to second-hand homes could increase house prices. 

The Taoiseach confirmed this was the case, stating “some have”. 

“That’s a fact that we have to look at. But to be honest with you, the priority really is to try and get more new builds started, and to get the private sector building more new builds. The state is doing all the heavy lifting at the moment,” he said. 

Martin said an increased the allocation of €700 million was put into housing this year, adding that he thinks more money will need to be pumped in to it by end of the year so as to allow for more funding to be allocated to housing schemes. 

He reiterated his disappointment with last year’s final housing delivery figures, stating that the 50,000 target per year has to be met due to the rising population. 

However, he also questioned whether the target of 50,000 is high enough.

“Whether that deals with the population growth is still an open question,” he said, stating that the Irish population has gone up a third in two decades.

“That’s massive. So housing supply is the key and that’s why we have taken the measures we’ve taken so far… they’re all building blocks,” said Martin.