The Minister for Finance has secured permission to cut the price limit for homes that can be used as part of the recently announced Help to Buy scheme from €600,000 to €400,000 according to reports this morning.
While this would be in effect a reduction of the stimulus, the purchasers in the €400,000-600,000 range were getting the least amount of help from the scheme.
The restriction that only those borrowing 80% of the purchase price would be eligible for the tax rebate will be relaxed to 70%. This follows concern from the Central Bank that the 80% level could have encouraged first-time buyers to increase their borrowing to avail of the Help-to-Buy scheme.
The Finance Bill is typically published in late October but may be amended as it progresses through parliamentary committees through November. So there could be further changes to the Help-to-Buy scheme before the bill is finally passed in December.
According to Goodbody Stockbrokers, "We view the number of first time buyers who would be purchasing in this price bracket as small, and the scheme will continue to be focused on the 'starter homes' end of the market, where it will have the biggest effect."
Source: www.businessworld.ie
