First Home Scheme Supports Nearly 5,000 Purchases Since Launch
New figures from the latest quarterly update show that the First Home Scheme has played a significant role in helping buyers access newly built homes since its introduction in 2022. To date, 4,887 homes have been purchased or self-built with the support of the scheme, while more than 9,000 applications have received approval.
Activity remained strong towards the end of 2025. In the final quarter alone, 769 homes were bought or constructed using the scheme, highlighting continued demand among first-time buyers who are struggling to bridge the gap between mortgage limits and market prices.
The scheme operates as a partnership between the Government and participating lenders, including AIB, Bank of Ireland and Permanent TSB. It is designed to support first-time buyers purchasing newly built homes or constructing their own properties by providing additional funding alongside a mortgage and deposit.
Under the scheme, buyers can receive equity support of up to 30% of the property price. Where the Help to Buy incentive is also used, the maximum support is capped at 20%. This structure has helped buyers access homes with an average purchase or build cost of €389,000. The typical level of support provided stands at approximately €66,000, representing around 17% of the overall price.
Uptake has been highest in areas with the greatest affordability pressures, particularly Dublin, Kildare, Cork, Meath and Wicklow. This geographic concentration challenges the assumption that affordability schemes have a uniform national impact. Instead, demand appears closely linked to regional house prices and supply constraints.
The First Home Scheme is based on a shared equity model. In exchange for the financial contribution, the State takes an equity stake in the property. Homeowners can buy back this stake at any point, either partially or in full. While no service charge applies during the first five years of ownership, charges begin thereafter. These range from 1.75% of the equity amount between years six and fifteen, rising to 2.15% from years sixteen to twenty-nine, and 2.85% from year thirty onwards.
For prospective buyers, the scheme offers meaningful short-term support, though it also introduces longer-term considerations around equity buyback and future costs. Advisers and accountants play a key role in helping clients assess whether the immediate affordability benefit outweighs the longer-term financial implications.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
