New €375k price ceiling in Cavan - Monaghan under First Home Scheme
MORE first-time buyers in Cavan and Monaghan will be able to avail of the Government’s First Home Scheme after the price ceiling in both counties has been raised by €25,000.
The change, which, took effect from January 1, means the new price ceiling for a new house or apartment under the scheme is €375,000 in each of the counties.
The First Home Scheme supports first-time buyers in bridging the gap between their mortgage, deposit and the price of a new home, and forms a key part of the Government’s Housing for All strategy.
Now anyone looking to get on the property market in Cavan and Monaghan can view houses priced up to €375,000 safe in the knowledge that properties at this higher rate will be covered under the First Home Scheme.
Changes
It's hoped the changes may also encourage the supply of additional new homes in areas with low stock of new homes currently.
The €740M government scheme provides financial support for people who wish to purchase or build a new home that they could not otherwise do after combining their available mortgage and deposit.
By bridging the gap between the available mortgage, deposit and the price of the new home, the Scheme will make the prospect of home ownership possible for many for the first time.
For example, a potential customer who earns €75,000 can only borrow four times their salary or €300,000. If the home they want is valued at €400,000 and they can provide a 10% deposit of €40,000 then their total available money is only €340,000 or €60,000 short of the asking price.
In this instance, under the First Home Scheme the government can step in to cover the ‘affordability gap’ of €60,000 for a 15% equity stake in the property.
Calling the announcement of increased price ceilings “good news” for counties like Cavan and Monaghan, Chief Executive of the First Home Scheme, Michael Broderick said: “These changes mean the scheme can help more people and promote additional housing supply.”
Minister for Housing, James Browne TD, said raising the ceilings under the scheme gives more first-time buyers the support they need to secure a home of their own.
“This is about broadening opportunity and making the ambition of home ownership achievable for many more people,” he said.
Move welcomed
Fianna Fáil Senator for Cavan–Monaghan, Robbie Gallagher, has welcomed the extension saying more first time buyers in the constituency will be able to benefit from it.
“I regularly speak to people who are currently going through the scheme, as well as those who have already been supported by it, and it cannot be overstated how transformational this support can be for individuals and families.”
The First Home Scheme is a joint initiative between the State and participating lenders, currently AIB (including EBS and Haven), Bank of Ireland and PTSB, with scope for additional authorised mortgage lenders to join.
Launched in July 2022, the First Home Scheme has, according to its latest progress report, provided over €273M in support to people purchasing or building their homes.
The purpose of the price ceilings is to ensure that the scheme can benefit as many people as possible, while avoiding distortion in local housing markets.
The ceilings will continue to be reviewed on a twice-yearly basis, with the next review scheduled for mid-2026.
Senator Gallagher concluded by saying that Fianna Fáil understands the importance of owning your own home and is fully committed to making home ownership more accessible.
“There is no quick fix, but measures such as this one make a genuine difference for families and individuals across Cavan and Monaghan. I will continue working closely with my colleagues to deliver meaningful results for communities across our counties,” he concluded.