CAPS AND LIMITS on first-time-buyer supports aimed at helping first-time buyers purchase homes are “under review”, according to Housing Minister James Browne.

At a launch of new homes in Naas, Kildare yesterday the minister was questioned about what the government plans to do to address anomalies where caps on State-backed mortgages put certain affordable home schemes out-of-reach for some buyers.  

Browne said the government is “reviewing all of those kind of limits right across the country and that’s a key part again about the [housing] plan”.

The minister said he wants to ensure that the grants and limits on government support schemes, such as the Local Authority Home Loan, are set at the correct level and that people can afford homes in their local community.

 Local Authority Home Loan 

The Local Authority Home Loan is a government-backed mortgage for first-time-buyers and fresh start applicants which is available nationwide from your local authority.

It can be used to purchase a new or second-hand property or for self-build, providing up to 90% of the market value of the property. The maximum loan amount is determined by where the property is located, however there have been criticisms that the thresholds are ruling out some housing developments. 

The minister said he wants to ensure all the schemes launched “tread together”.

Housing Minister James Browne. Alamy Stock Photo Alamy Stock Photo

“I think that Local Authority Home Loan is crucial, but I think it can do an awful lot more. And I think that really means examining how it’s working, both in terms of its limits and also simplifying these schemes.

“I’m a great believer that to deliver homes, we need to simplify everything that’s on offer,” he said, stating that he has been working to simplify some of the applications for the schemes.

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“So there’s two ways we can do it. One is increasing the limits, but also driving down the cost as well of affordable homes,” he added.

The government has to be cautious there are no unintended consequences, he added, stating that he does not want to create inflationary pressures that drives up house prices even further and makes homes even more unaffordable.

“It is really important to me that people can access that home loan,” he said, reiterating that he is looking “very closely” at the Local Authority Home Loan Scheme as he believes it can do a lot of the “heavy lifting” in supporting people get homes.