New affordable housing plan will see the Government take 30% stake in homes of first-time buyers
The Governments new affordable housing plan that will see the State take up to 30% equity to help finance the purchase of a new home. Housing Minister Darragh O’Brien has said the new scheme will have no arbitrary salary caps. The introduction of a shared equity scheme will be in conjunction with the Help-To-Buy initiative and will assist those buyers currently locked out of the market,many of whom are caught in a rental trap.
Under the scheme the government takes an equity loan share of up to 30% in your home while the owner takes out a mortgage with a bank on the remainder.It
will be open to all new build homes subject to price caps and is targeted at first time buyers. The government believes the new support will save potential owners up to €11,000 per year in rent and in the long term save the state rental support payments.
An initial €75 million has been set aside by the government for the scheme for 2021, and will be boosted with additional private investment.This is is separate to the €135 million being invested in the cost rental affordable measure and €150 million for the Help-To-Buy scheme.
The launch of the scheme will take place in the summer 2021.