Plans by Fianna Fáil to extend first-time buyer subsidies to second-hand properties will only “add fuel to the fire” of house prices, it has been claimed, writes Brian Mahon.
The party has proposed extending the First Home Scheme – which currently only applies to new builds – to second-hand homes, as it seeks to grasp the nettle on the crucial housing issue ahead of the general election.
The shared-equity scheme, which has been criticised as inflationary by economists, sees the State paying up to 30% of the cost of a new home in return for a stake in the property.
When the scheme was launched in 2022, Housing Minister and Fianna Fáil TD Darragh O’Brien said it wasn’t open to pre-owned properties because he “didn’t want to overheat the second-hand market”.
Lorcan Sirr, housing expert and senior lecturer at Technological University Dublin (TUD), warned such a move would only increase the cost of second-hand homes.
“Oh dear …