The inadequate supply of new housing in some counties is “undoubtedly” affecting the number of buyers availing of the First Home Scheme, according to its chief executive.
The Government scheme has reached its 5,000th drawdown, a milestone that chief executive Michael Broderick said was “significant”.
More than 9,000 applicants across all counties have sought funding of €66,000 on average in exchange for an equity stake of up to 30 per cent in the homes.
“I appreciate 5,000 in the overall scheme of housing is small enough, but for those 5,000 individuals and families it’s important for them,” he said.
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The scheme was launched in 2022 with a target of funding the purchase of 8,000 new-builds within five years, Broderick said, saying it was “very much on target”.
[ Two-thirds of First Home Scheme applicants also availing of Help-to-Buy arrangement ]
However, he said the supply of new housing stock was “undoubtedly” affecting the number of first-time buyers availing of the support.
Figures show the scheme has been used to buy 1,234 houses in Dublin, 747 in Cork, 706 in Kildare, but only two homes have been bought in Longford.
Other counties, such as Leitrim (4), Kerry (6) and Roscommon (11), have had minimal drawdowns.
“There are certain counties where, genuinely, I would love us to be doing much, much more, and the reason we’re not is quite simply because there is no supply of new homes being built there,” Broderick said.
About two-thirds of all scheme applicants have used it in combination with the Help-to-Buy scheme, which gives buyers tax rebates of up to €30,000.
The need for such supports was “indicative of the fact that there are flaws in the housing market in Ireland, and I don’t think anyone would deny that”, Broderick said.
“The optimum from Ireland’s perspective, and from all the people who are trying to buy houses out there, is that there wouldn’t be a need for schemes such as ours and the Help-to-Buy.
“Will we ever get there? I honestly don’t know, but for the foreseeable future I think there is a need.”
Under the First Homes Scheme a joint application is counted as one buyer, not two. It means the 5,000 drawdowns have so far benefited 8,000 people, which comprise single buyers and joint purchasers.
More than 9,000 applicants across all 26 counties have been approved by the scheme.
Citing a KPMG study, which found no evidence to suggest the scheme has “contributed materially” to inflation in new home values, Broderick said: “We’re not naive enough to think that it isn’t having some, but it’s not the big driver of house price inflation that some people would have you believe.”
Dean Lane, a 35-year-old based in Co Kildare, is among the first-time buyers to use the scheme, which he described as a “game-changer”.
He and wife Marisa hoped to buy their first home in Naas or Newbridge, where their families were based, but found they were “priced out” of both locations “even with the scheme”.
They had rented in Newbridge for several years until their landlord opted to sell up. They moved in with her mother in January 2025 to save for a deposit.
“We didn’t go on holiday. We did nothing. We didn’t go out for dinner. We just suffered through, which shouldn’t have to happen,” he said.
They later secured a two-bedroom house in Kildare town for €405,000.
Through the First Home Scheme, they received about €68,000. This was alongside €30,000 from the Help-to-Buy scheme.
Lane said the First Home Scheme was the difference between “getting on the property ladder now or not getting on it at all”.
“We were glad of the help when we got it,” he said, though he said it was “not ideal” that first-time buyers must move in with parents to “save and then potentially have to use a Government scheme to afford a house”.
“It is kind of mad that that is what it’s come to.”
