The Help to Buy scheme has been a lifeline for many first-time homebuyers in Ireland. As part of Budget 2025, the government has announced significant changes to this popular programme. The Help to Buy scheme will be extended until the end of 2029, providing certainty for future homebuyers and the property market.
This extension aims to support more individuals and couples in purchasing their first homes. The scheme offers a tax rebate to first-time buyers, with a maximum value of €30,000 or 10% of the property price, whichever is less. While this extension has been welcomed by many, some experts warn that it may drive up property prices as it primarily targets demand rather than supply.
To date, the Help to Buy scheme has supported over 50,000 individuals or couples in buying their own homes. The extension of this scheme is part of a broader set of housing measures announced in Budget 2025, aimed at addressing the ongoing challenges in the Irish housing market.
Key Takeaways
- The Help to Buy scheme has been extended to 2029, offering continued support for first-time buyers.
- The scheme provides a tax rebate of up to €30,000 or 10% of the property price for eligible buyers.
- While beneficial for many, the extension may impact property prices due to increased demand.
Overview of the Help to Buy Scheme 2025
The Help to Buy scheme will continue in 2025 with some key updates. You can get financial support to purchase your first home through this programme.
Purpose and Objectives
The Help to Buy scheme aims to make home ownership more accessible for first-time buyers. You can claim a tax rebate to use towards your deposit when buying a newly built home.
The scheme supports up to €30,000 or 10% of the property price, whichever is less. This helps you save for a deposit more quickly.
By extending the scheme to 2029, the government wants to give certainty to future homebuyers and the housing market. The goal is to boost home ownership rates among young people and families.
Key Changes from Previous Years
For 2025, the Help to Buy scheme will remain largely the same as before. The main change is its extension until the end of 2029.
This longer timeframe gives you more time to plan and save. It also aims to steady the housing market by maintaining consistent policies.
The scheme has helped over 50,000 individuals or couples buy homes since it began. By extending it, the government hopes to assist many more first-time buyers in the coming years.
Some experts warn the extension might drive up property prices. Keep an eye on market trends as you plan your home purchase.
Eligibility Criteria
The Help to Buy scheme has specific rules about who can use it and what properties qualify. These criteria ensure the programme helps those who need it most.
First-Time Buyers
You must be a first-time buyer to use the Help to Buy scheme. This means you’ve never owned a home in Ireland or abroad. If you’re buying with someone else, you both need to be first-time buyers.
The scheme applies to new homes only. You can’t use it for second-hand properties.
You must live in the home as your main residence for at least five years after buying it. If you move out earlier, you might have to pay back some of the help you got.
Existing Homeowners
If you’ve owned a home before, you can’t use the Help to Buy scheme. This rule applies even if you no longer own that property.
There are some exceptions. If you’ve gone through a divorce or the end of a civil partnership, you might still qualify. You’ll need to prove you no longer have a legal interest in your previous home.
The scheme aims to help people get on the property ladder for the first time. So, if you’re looking to move or upgrade, you’ll need to explore other options.
Income Requirements
Your income affects how much help you can get from the scheme. The maximum tax rebate is €30,000 or 10% of the property price, whichever is less.
To get the full amount, you need to have paid enough income tax in the past four years. If you haven’t paid that much, your rebate will be smaller.
There’s no set income limit to use the scheme. But remember, you still need to qualify for a mortgage. Lenders will look at your income when deciding how much they’ll lend you.
Property Types
The Help to Buy scheme covers a range of new-build properties. These include:
- Houses
- Apartments
- Self-build homes
The property must be your main home. You can’t use it for buy-to-let or as a holiday home.
There’s a price limit on eligible homes. As of 2024, the scheme only applies to properties worth up to €500,000. This cap helps target the scheme at first-time buyers in the mainstream market.
Self-builds are included, but you must get full planning permission before applying. The same price limit applies to self-builds as to other new homes.
Application Process
The Help to Buy scheme has a straightforward application process. You’ll need to follow specific steps and provide certain documents to apply.
Step-by-Step Guide
- Register for an account with Revenue online. You can do this through myAccount or the Revenue Online Service (ROS).
- Make sure you’ve paid any outstanding taxes. This is crucial for getting a Tax Clearance Certificate, which you’ll need for your application.
- Click on ‘Help To Buy’ in the ‘Property and Land Services’ section of myAccount. If you’re using ROS, look for the ‘Help to Buy applicant link’ on the home screen.
- Fill out the application form with your personal details, property information, and financial data.
- Submit your application and wait for Revenue to process it. They’ll review your information and may ask for additional documents if needed.
Required Documentation
To complete your Help to Buy application, you’ll need to have these documents ready:
- Proof of identity (passport or driving licence)
- PPS number
- Tax Clearance Certificate
- Proof of income (payslips or tax returns)
- Details of the property you’re buying or building
- Mortgage approval in principle from your lender
Make sure all your documents are up-to-date and accurate. Any errors or missing information could delay your application.
Remember, if you’re using the Local Authority Affordable Purchase Scheme, you can now also qualify for Help to Buy. This change came into effect on 11 October 2023.
Scheme Benefits and Limitations
The Help to Buy scheme offers advantages for first-time buyers but also comes with potential risks. Key factors include financial support and market impacts.
Advantages for Participants
The scheme provides significant financial aid to first-time homebuyers. You can get up to €30,000 towards your deposit, making it easier to purchase a home. This reduces the amount you need to save upfront.
The programme helps you buy a more expensive property than you might otherwise afford. It can open up options in desirable areas or for larger homes.
You may qualify for better mortgage rates with a larger deposit. This could lead to lower monthly payments and long-term savings on interest.
The scheme encourages builders to construct new homes. This can increase housing supply, potentially giving you more choices when house-hunting.
Risks and Considerations
The Help to Buy scheme may drive up property prices. This could offset some of the financial benefits and make homes less affordable overall.
You’re limited to new-build properties. This restricts your options and may force you to buy in areas with lots of new development.
The scheme has an expiry date. If you’re not ready to buy before it ends, you might miss out on the benefits.
There’s a risk of negative equity if property values fall. You could end up owing more than your home is worth, especially if you’ve borrowed a high percentage of its value.
Impact on the Housing Market
The Help to Buy scheme extension will shape Ireland’s housing landscape. It aims to boost home ownership and influence property prices.
Market Stimulus
The Help to Buy scheme extension to 2029 will likely stimulate the housing market. You can expect increased demand for newly built homes, as first-time buyers take advantage of the tax rebate.
This could lead to more construction activity. Developers may be motivated to build more properties to meet the growing demand. As a result, you might see a rise in housing supply over the coming years.
The scheme may also influence property prices. With more buyers entering the market, there could be upward pressure on prices for new builds.
Affordability and Accessibility
The Help to Buy scheme aims to make home ownership more accessible. You can benefit from a tax rebate of up to €30,000, which can significantly reduce the deposit needed to buy a new home.
This financial boost may allow you to enter the property market sooner than expected. It could be particularly helpful if you’re struggling to save for a deposit in areas with high housing costs.
However, the scheme’s impact on overall affordability is debated. While it helps with initial costs, it may contribute to keeping house prices high. This could make it harder for those not eligible for the scheme to buy homes.
Regional Variations and Allocations
The Help to Buy scheme for Budget 2025 will see changes in how funds are distributed across different regions. Local housing needs will play a key role in determining allocations.
Funds Distribution
The government plans to introduce regional variations on the cap for the Help to Buy scheme. This change recognises the price differences in various parts of the country.
Areas with higher property prices may receive larger allocations. For example, Dublin and other major cities could see increased caps to match local market conditions.
Rural areas and smaller towns may have lower caps, reflecting more affordable housing prices in these regions.
Local Housing Priorities
Each region will have its own set of housing priorities based on local needs and market conditions.
In urban areas, the focus may be on supporting first-time buyers in a competitive market. Rural regions might prioritise attracting new residents to boost local economies.
The scheme aims to address specific challenges in different areas:
- Shortage of affordable homes in city centres
- Lack of new builds in smaller towns
- Need for renovation support in older housing stock
By tailoring the Help to Buy scheme to local needs, you’ll find more targeted support for your home-buying journey.
Compliance and Monitoring
The Help to Buy scheme’s compliance and monitoring processes ensure its effectiveness and integrity. These measures safeguard the programme’s proper implementation and track its impact on the housing market.
Regulatory Oversight
The Revenue Commissioners oversee the Help to Buy scheme’s regulatory compliance. They verify applicants’ eligibility and process claims.
You must submit accurate information when applying. False declarations can lead to penalties or disqualification.
The Revenue conducts regular audits to detect fraud and ensure adherence to scheme rules. They may request additional documentation to support your claim.
Property developers and estate agents must also comply with specific guidelines. This includes providing clear information about the scheme to potential buyers.
Scheme Performance Metrics
The government closely monitors the Help to Buy scheme’s performance. Key metrics include the number of approved claims and total cost.
Since 2016, 49,684 claims have been approved, with an estimated cost of €1.07 billion. These figures help assess the scheme’s reach and financial impact.
The Parliamentary Budget Office analyses the scheme’s effect on property prices. Their findings inform policy decisions and potential adjustments.
Other important metrics include:
- Average claim value
- Regional distribution of claims
- Impact on first-time buyer rates
- Changes in property prices in affected areas
These data points help policymakers evaluate the scheme’s effectiveness and make informed decisions about its future.
Financial Advice and Assistance
Financial guidance is crucial when using the Help to Buy scheme. The rent tax credit has increased to €1,000 for individuals and €2,000 for couples in 2025. This can help you save for a deposit.
You can access free financial advice through:
- Online calculators to estimate your budget
- Webinars on mortgage options
- Personalised sessions with financial advisors
These services help you understand:
- How much you can borrow
- Monthly repayment estimates
- The impact of interest rates on your mortgage
Some government websites can also help you apply for the Help to Buy scheme. They’ll guide you through the paperwork and ensure you meet all requirements.
