Help-to-buy scheme set to be extended in upcoming budget, say Varadkar

The Tánaiste said the scheme has helped more than 20,000 people to get their deposit together and buy their first home. Picture: RollingNews.ie

Tánaiste Leo Varadkar has signalled that the help-to-buy scheme for first-time homeowners is set to be extended beyond the end of 2021 in next month's budget.

Speaking in the US to Irish media, Mr Varadkar said the 9% increase in house prices this year is unwelcome, particularly for people who are trying to buy a home for the first time or maybe want to upgrade because they have a growing family.

“Help-to-buy is there, and it’s going to remain in place for a little bit longer. There’ll be an announcement on budget day on the detail of that — but it is going to remain in place. While some people criticise it as a measure that can cause house price inflation, I think most people will see it as a measure where people get their taxes back, and they can put that towards their deposit, he said.

The Tánaiste said the scheme has helped more than 20,000 people to get their deposit together and buy their first home.

"I think that’s why we would intend to retain it for a little bit longer," he said.

Reports on Monday indicate that house prices have risen by 9% on average over the past year.