The cumulative cost of the Government's Help-to-Buy (HTB) scheme for first time buyers was €559.7 million at the end of 2021, which was 43%, or €168 million, more than original cost estimates.
The scheme was first introduced in 2016.
A report from the Parliamentary Budget Office (PBO) also found that 63% of HTB claims were used to buy homes above the average national house price.
The report also found that one third of those who availed of the scheme did not need it to meet the 10% deposit requirement for a mortgage. Instead, Help-to-Buy enabled them to create larger deposits.
The report states: "This increased the purchasing power of FTBs, which fuelled property inflation and created a dead weight loss."
The PBO goes to remark that this "...suggests that the scheme is poorly targeted towards its stated aim of providing support to FTBs in meeting their deposit requirement."
In 2021, 7,826 claims were made, the highest ever number and a 47% increase on the number in 2017. The average claim was €24,300.
The scheme was first announced as part of the Rebuilding Ireland plan in July 2016. It was due to expire in 2019 but has been extended ever since. Its maximum claim limit was increased from €20,000 to €30,000 in 2020. The scheme only covers new or self-build properties valued at €500,000 or less.
Six counties accounted for 70% of claims: Dublin, Cork, Wicklow, Kildare, Meath and Louth.
The PBO notes that cost overruns on the scheme "... raises concerns on the methodology used to forecast the costs of the scheme..."
