First Home Scheme: The price of houses will not be increased…
Dublin: KPMG’s recent study report on the government’s First Home Scheme, aimed at facilitating homeownership for ordinary citizens, suggests that the initiative is unlikely to contribute to property price inflation. Despite concerns raised by various agencies, including the central bank, regarding potential impacts such as increased construction material costs, regulated component availability, and housing shortages, the KPMG review found no evidence supporting the notion that the scheme would drive up prices. However, the report’s findings have sparked controversy.
The study highlights several advantages of the scheme. It indicates that while the First Home Scheme has had a minimal impact on house price inflation, it has significantly increased the number of homeowners and stimulated more homes entering the market. Particularly, the report underscores the scheme’s assistance to single-person households struggling to secure mortgages and its facilitation of home purchases for both young and elderly individuals.
In addition to the scheme, the report identifies various other factors contributing to the rise in new home values. These include escalating building material costs, challenges in accessing regulated components, a growing preference for energy-efficient homes, and a shortage of housing fuel.
Despite the positive outcomes observed, the report emphasises the necessity for ongoing monitoring to prevent potential risks of price hikes. It acknowledges the continued growth in first-time homebuyers and homebuilding activities but underscores the importance of vigilance in managing any potential negative consequences.
The First Home Scheme, introduced by the government in collaboration with EBS, Haven, Bank of Ireland, PTSB, and AIB, aims to assist first-time homebuyers in bridging the financial gap between mortgage, deposit, and house prices. With a budget allocation of 400 million euros, the scheme offers government assistance of up to 30 percent of the house price, provided as interest-free equity for a period of six years, with each local authority area having a specified maximum price limit.
Irish Samachar English News
{OR} Kindly click to follow the Irish Samachar News channel on WhatsApp
Comments are closed.