The Help-to-Buy scheme may face significant changes in the October Budget, according to a report in the Sunday Independent.
The piece suggests that the Minister of Finance is considering lowering the property cap to as low as €250,000 from €600,000, but a number of alternate caps have been laid out by the Revenue commissioners. The lower cap would effectively price out new homes in Dublin. A €400,000 cap scenario has also been laid out.
According to Goodbody Stockbrokers, "The Help-to-Buy scheme has come under fire by some for its inflationary pressures on prices. It has, however, been an important stimulus for first-time buyers, thus increasing realisable demand. Given completions have already fallen significantly in the capital this year, lowering the property value cap on new homes to as low as €250,000 could have a further negative impact on completions in Dublin. Decisions will likely be made in the Budget in October."