The path to homeownership just became more achievable. Budget 2026 introduces significant measures designed to ease the financial burden on first-time buyers, from extended tax relief schemes to innovative housing supply initiatives. Understanding these changes could save you thousands of pounds and accelerate your journey to securing your first home.
This comprehensive guide breaks down every Budget 2026 measure that affects first-time buyers, helping you navigate the opportunities ahead and make informed decisions about your property purchase.
Help to Buy Scheme Extension: More Time to Save
The Help to Buy scheme remains one of the most valuable supports for first-time buyers, and Budget 2026 confirms its extension. This scheme allows you to claim back income tax up to €30,000 (or 10% of the purchase price, whichever is lower) to help fund your deposit.
The extension provides crucial breathing room for buyers who need more time to save their deposit. With the scheme applicable only to new-build homes under €500,000, first-time buyers can secure substantial tax relief that directly reduces their upfront costs.
For example, purchasing a €300,000 new-build property could yield €30,000 in tax relief, effectively covering your entire 10% deposit requirement. This makes the difference between remaining a renter and becoming a homeowner for many young professionals and families.
First Home Scheme: Shared Equity Support
The First Home Scheme continues as a shared equity initiative that allows you to reduce upfront purchase costs through state co-ownership. Under this arrangement, the government and banks pay up to 30% of the home cost in exchange for a stake in the property, which you can buy back later.
Currently limited to first-time buyers purchasing newly built properties or building their own homes, this scheme proves particularly valuable in expensive areas where traditional mortgages fall short of purchase requirements.
While Budget 2026 maintains the scheme’s focus on new builds rather than extending it to second-hand homes, the Starter Homes programme received a substantial €1.2 billion allocation with targets to deliver 15,000 new homes in 2026. This increased supply should create more opportunities for first-time buyers to access the scheme.
Housing Supply Initiatives: Building Your Future
Budget 2026 addresses housing supply challenges through targeted infrastructure investment and developer incentives. The government allocated €205 million to a new housing activation infrastructure fund, supporting the work of the newly established Housing Activation Office.
These supply-side measures directly benefit first-time buyers by increasing available properties and potentially moderating price growth. The budget targets delivering between 30,000 to 50,000 houses per year, with delivery strategies including:
- Rezoning additional land for residential development
- Utilising existing serviced land more effectively
- Potentially changing height restrictions on apartment blocks
- Bridging the “viability gap” for apartments to encourage private sector investment
The ambitious five-year target of 300,000 new homes signals the government’s commitment to addressing supply shortages that have made homeownership increasingly difficult for first-time buyers.
Tax Incentives for Developers: Indirect Benefits
Several tax measures aim to stimulate construction activity, creating indirect benefits for first-time buyers through increased housing supply.
The VAT rate on new apartment sales drops from 13.5% to 9% until the end of 2030. This reduction could translate to savings passed on to buyers, making new apartments more affordable.
Additional corporation tax deductions for apartment construction costs and conversions of non-residential buildings into residential units should incentivise developers to focus on housing delivery. Properties within the Cost Rental Scheme will receive corporation tax exemption on rental profits, encouraging affordable housing development.
These measures work together to make residential development more profitable for builders, potentially increasing supply and providing more options for first-time buyers.
Derelict Property Tax: Encouraging Development
Budget 2026 introduces a new derelict property tax to replace the existing derelict site levy, implemented from 2027. This tax will not be lower than the current 7% levy and aims to discourage property speculation while encouraging development of unused sites.
For first-time buyers, this measure could unlock additional housing supply by pressuring owners of derelict properties to either develop or sell their sites. More available land and properties entering the market could help moderate prices and create opportunities in previously stagnant areas.
Rent Tax Credit Extension: Support While You Save
The Rent Tax Credit receives a three-year extension at current levels: €1,000 for individuals and €2,000 for couples. This measure provides crucial financial relief for first-time buyers still renting while saving for their deposit.
The extended credit helps reduce your overall housing costs, allowing you to allocate more income toward deposit savings. Over three years, a couple could save €6,000 in tax relief, representing a significant contribution toward their future home deposit.
Existing homeowners also benefit from mortgage interest tax relief extension for two more years, though the final year sees reduced benefits (€1,250 for 2025, €625 for 2026).
Expert Legal Support: Your Essential Foundation
Navigating the legal complexities of property purchase requires experienced professional guidance. Budget 2026’s various schemes and incentives create additional documentation and compliance requirements that only specialist solicitors can handle effectively.
At HOMS Assist, our experienced property solicitors offer expert legal support for all aspects of residential property law across Ireland. With offices in Dublin, Limerick, and Cork, our services remain available wherever your property search takes you.
Our team manages every detail of the conveyancing process, from essential searches including land registry and planning permission reports to ensuring any debt or charges on the property are cleared before completion. We handle Help to Buy scheme applications, First Home Scheme documentation, and all legal requirements specific to first-time buyers.
Professional legal support becomes particularly crucial when dealing with new government schemes, as compliance requirements and application processes can be complex. Having trusted advisors like experienced solicitors gives you the competitive edge needed in tight housing markets.
Planning Your Next Steps
Budget 2026 creates genuine opportunities for first-time buyers, but success requires careful planning and professional guidance. Start by assessing which schemes apply to your situation—the Help to Buy scheme for new builds under €500,000, or the First Home Scheme if you need shared equity support.
Factor in additional costs beyond your deposit, including stamp duty (1% of property value up to €1 million), solicitor’s fees, surveyor costs, and potential service charges for managed estates. Remember that first-time buyers typically need at least a 10% deposit, so a €300,000 home requires €30,000 upfront.
Consider arranging mortgage protection insurance and fire cover insurance early, as these are typically lender requirements. Most importantly, engage with trusted professionals—mortgage brokers for financing options and solicitors for legal requirements—before beginning your property search.
Being pre-approved for financing and armed with professional advisors positions you advantageously in competitive markets. With Budget 2026’s measures supporting both supply increases and first-time buyer assistance, your homeownership goals are more achievable than ever.
The housing market landscape continues evolving, but Budget 2026 provides the strongest foundation for first-time buyers in recent years. Take advantage of these opportunities with proper planning, professional guidance, and confidence in your next step toward homeownership.
Budget 2027 update: 10 October 2026
This article is a historical guide to Budget 2026. Some figures below have since changed.
For qualifying purchase contracts signed, or first mortgage drawdowns for qualifying self-builds, from 7 October 2026 to 31 December 2029, the Help to Buy maximum is €35,000 per property. Your refund is the lowest of €35,000, 10% of the qualifying purchase value or approved self-build valuation, and eligible Income Tax and DIRT paid in the four tax years before your application.
The €30,000 cap discussed below applies to qualifying contracts or first self-build mortgage drawdowns from 23 July 2020 to 6 October 2026. Completing an earlier contracted purchase after 7 October 2026 does not, by itself, qualify it for the higher cap.
The €500,000 value limit remains for qualifying new homes and self-builds, and eligibility conditions still apply. Read the remaining figures as Budget 2026 context. For current Help to Buy and property context, see our Budget 2027 guide and Revenue’s Help to Buy guidance.
This article was written by William Donovan, a Conveyancing Solicitor and Property Law Expert at HOMS Assist. With nearly 30 years of legal experience, William specialises in residential property transactions and probate matters, ensuring a smooth and stress-free process for his clients. A dedicated community member, he actively supports local organisations and shares his expertise on wills and estate planning.
