The government has defended plans to extend a scheme that helps first-time buyers, acknowledging that there is a risk that property prices may increase as a result.  

The First Home scheme is set to be extended to self-build properties, with Minister Darragh O’Brien fulfilling a commitment he made last year.

The scheme to date has been open to people buying new-build houses and apartments and to renters whose landlords are selling the property in which they live. It is now being extended to include people who are building their own home, with financial support available for up to 30% of the total cost of the build. The scheme works by closing the gap between a buyer’s mortgage approval amount and deposit and the cost of a property. 

A self-build home is considered to be one that is built on a site by its owner(s), either through direct labour or a fixed contractor, and it must be used as their principal private residence. 

Rory Hearne and Sinn Féin’s spokesperson for housing Eoin Ó’Broin, expressed concerns about the potential impact on property prices. He told RTE Radio One that more research and analysis would need to be provided by the minister on the potential impact that the extension of the scheme may have to the prices of existing homes.