State mortgage top-ups for those building own homes to be rolled out from next week

Renters and landlords, are expected to receive supports in next month's Budget with Housing Minister Darragh O'Brien pushing strongly to double the rent tax credit to €1,000 per renter.

State mortgage top-ups for those building their own homes are to be rolled out from next week.

Self-builders who find it difficult to get a full mortgage are to be included in the Government's First Home Scheme which provides low-cost loans worth up to 30% of the value of the home.

Launched last July, the First Home Scheme scheme aims to help first-time buyers bridge the gap between their mortgage, deposit and the price of a new home.

Up until now the scheme has been open to people looking to buy a new property, however, the funding is to open for self-builds from next week.

A total of 5,859 people have registered their details with the First Home Scheme to date, with 2,362 approvals issued.

Around 80% of those approvals have been for buyers in Dublin, Cork, Kildare, Meath and Wicklow.

Minister for Housing Darragh O’ Brien previously said that the target was for 2,000 homes to be delivered under the €400m scheme each year for the first three years.

The €400m affordable purchase scheme, designed in conjunction with mortgage providers and Banking and Payments Federation Ireland (BPFI), 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.

Those accessing the funds can also apply for the first-time buyers grant.

However, the Government has ruled out any extension of the €30,000 grant to those who buy second hand properties.

It is understood Finance Minister Michael McGrath has strongly dismissed calls to expand the grant to older homes as he fears this would have a significant inflationary impact on house prices.

But another option could be to extend the First Home Scheme to people who opt to purchase a second-hand home.

Renters and landlords, are expected to receive supports in next month's Budget with Housing Minister Darragh O'Brien pushing strongly to double the rent tax credit to €1,000 per renter.

It is understood Mr O'Brien is looking to address the level of uptake of the tax credit and making adjustments to the requirement that the tenancy is registered with the RTB.

Tax measures to help landlords, which would be linked to security of tenure for tenants, are also being worked on as part of the package to be announced.

As Budget discussions ramp up, Minister for Public Expenditure Paschal Donohoe has also made it clear that he will not be opening the purse strings next month.

Writing in today's Irish Examiner, Mr Donohoe has said he hear calls for more money to be spend but he must stick to the spending plans announced for next year.

"I appreciate this is a difficult argument to make at a time of a surplus. Each call to spend more is backed up by a worthy case and a compelling argument.

Hitting out at Mary Lou McDonald's party, Mr Donohoe said: "Sinn Fein would spend every cent we have, make inflation even worse and plunge us back to boom and bust spending. They are for everything that is popular and against nothing that is difficult.

"That is why sticking to our spending plans is so important. It is a recipe for more houses, better public services and improving standards of living for Ireland."

Cuts to USC as well as changes to income tax thresholds are all under consideration, with proposals now being worked up by Mr McGrath to give to the three Government leaders.