The Government's "First Home Scheme" report for 2023 shows a significant increase in usage, with the number of homes bought in the second half of the year over five times the number bought during the same time in 2022.
The €400m scheme was set up to make it easier for first-time buyers to afford a new build home and aims to bridge an existing affordability gap by providing buyers with part of the purchase price for their home, in return for the scheme taking a minority equity stake.
Its eligibility criteria was extended last year and today it was announced that it will be further widened in six local authority areas with immediate effect.
Today's report shows that a total of 3,196 buyers were approved last year and 1,255 homes were bought using the scheme.
Of the 1,255 homes bought, 1,118 were bought in 2023 and 137 were bought in 2022 after it started operations in July 2022.
The number of homes bought in the second half of 2023 amounted to 799 compared to 137 in the second haf of 2022.
It also reveals that the average purchase price for purchases completed in 2023 is €380,000. The average support being provided by First Home in these cases is about €67,000, or 18% of the average purchase price.
A total of 3,196 buyers in 25 counties have been approved by the scheme and have received eligibility certificates allowing them to buy their chosen home.
1,255 buyers in 23 counties have already completed the purchase of their home using the scheme and another 429 applications are currently being processed, with approvals expected to issue shortly in the majority of these cases.
Meanwhile, a total of 7,530 potential buyers have registered their interest in the scheme, with over 5,000 new expressions of interest submitted in 2023.
Today's report also shows that 77% of live approvals have been for buyers in Dublin, Cork, Kildare, Meath and Wicklow, with the remaining 23% spread across 20 counties throughout the country.
Eligibility for the scheme was extended to thousands of additional first-time buyers in early 2023, following the widening of eligibility criteria for homes in 30 of Ireland's 31 local authority areas, with the limit for eligible homes increasing by up to €75,000.
The scheme is today announcing a further widening of the eligibility criteria for the Scheme in six local authority areas - Galway City, Galway County, Limerick City & County, Laois, Waterford and Clare - following the completion of its scheduled half-yearly review of price ceilings.
These changes will increase the choice available to scheme users in these six local authority areas by increasing the applicable price ceilings by €25,000 in each case.
Houses with prices of up to €475,000 and apartments with prices of up to €500,000 are eligible for the Scheme, depending on their location.
The scheme was further extended in 2023 to include two new groups of people - tenants who wish to buy their home from a landlord and self-build customers who are building their own home.
The First Home Scheme's chief executive, Michael Broderick, said the scheme generated very strong momentum in 2023, with its usage increasing dramatically over the course of the year and building on the early progress made in 2022.
"We'd encourage anyone seeking to buy or build their first home to look at what we offer and see how we can help them. We’ve a strong track record in processing applications quickly and efficiently and feedback from people who have used the Scheme has been very favourable," Mr Broderick said.
The Minister for Housing, Local Government and Heritage Darragh O'Brien said today's figures show the First Home Scheme is working effectively and successfully making home ownership a reality for so many first-time buyers.
"It's really encouraging to see so many people expressing interest in the scheme and making the most of the benefits it offers," he said.
"Right from the start we've been describing this scheme as a game-changer in bridging the affordability gap. I'm confident it will help thousands more First-Time Buyers, including people who want to build their own home as well as tenants whose landlord is selling the property," he added.
