A SAVINGS AND investment scheme to help first-time buyers is under consideration by government. 

In an interview with The Journal, Taoiseach Micheál Martin said such a scheme could incentivise and give first-time-buyers an opportunity to save, adding, “that’s something we would examine, certainly”. 

“I’m not going to give a commitment on it, but we’re not ruling it out either,” he added. 

In the UK, such a scheme exists whereby a person can pay in up to £200 each month and the government will top up your savings by 25% (up to £3,000) when they buy their first home.

While the Taoiseach would not be drawn on specifics, he indicated the Help-to-Buy scheme, which can provide a maximum payment of €30,000, will not see a boost stating it is a very substantial help for first-time-buyers. He said there is a commitment in the programme for government to keep such supports.

He noted the number of mortgage drawdowns is continuing to grow, but added the prices are very high, acknowledging that the threshold is often breached now when it comes to the Help-to-Buy scheme not being applicable to some new-build developments now. 

Martin also stated that he has asked his economists to look at the matter of a new State investment scheme that would fund the delivery of homes, noting that it was a proposal the Social Democrats had put forward also.

“It’s a savings and investment scheme, essentially, but that the funding somehow would be ring fenced for spending on housing,” he said. There is a similar scheme in France, whereby the incentivised savings scheme becomes a funding stream for government to build houses. 

Rent Tax Credit 

The Renter’s Tax Credit, which is currently €1,000 will also see an increase, said the Taoiseach. 

Prior to the election, Martin said he wanted to “at least” double the payment.

He told The Journal the government will, “first of all, maintain what it is, but over the lifetime of the government increase it to give further protection to renters”.

While he wouldn’t go into the specifics of the planned increases in the upcoming budget, he said it’s “a commitment we’re focused on”.

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“If you look the last three to four years, protections have increased continuously for renters, but it’s the price that is the problem, the cost of renting and the affordability of it, and that really comes back to supply,” he said. 

“If we get far more apartments built, and if we get far more housing built, that, over time, moderates the price of the cost of rent. Because at the moment, if you’ve only 30,000 odd new units a year, that won’t be enough to moderate [rent prices],” he said.

Separately, the Taoiseach confirmed that the vacant grant scheme, used by those to refurbish a property that has been vacant for over two years, is an important focus for the government.

He acknowledged there was an issue with the payouts of the grants and that house buyers must frontload the costs before waiting for the state to pay it back.

“That will be examined… we don’t want to be putting people out,” he said.