The new affordable housing plan will see the state take a 30% stake in homes from first-time buyers

The GOVERNMENT’s NEW affordable housing plan that will have the state take up to 30% of the net worth of a home with a first-time buyer will be delivered to Cabinet next week.

The long-promised new plan will not have arbitrary salary caps, said Housing Minister Darragh O’Brien.

The introduction of a shared capital scheme will be in conjunction with the Help-To-Buy initiative and will help those buyers who are currently excluded from the market.

Under the scheme, the state takes up to a 30% home equity loan share of your home, while the homeowner gets a mortgage with a bank on the rest, as usual.

It will be open to all newly built homes subject to price caps and is geared toward first-time buyers with some exemptions for separate individuals.

The government believes the new support will save potential owners up to € 11,000 a year in rent and, in the long term, save state rental support payments.

It is expected to also be subject to house price caps.

While the final details of the scheme are being negotiated with stakeholders and will be subject to state aid approval from the EU Commission, the plan will be approved by the Cabinet next Tuesday and will be presented to the Dáil in early 2021. .

The launch of the scheme will take place in the summer of 2021.

The minister says the scheme will boost housing supply as it helps guarantee sales by closing the gap between Central Bank rules and the real cost of a home for ordinary income families.

The government has reserved an initial amount of 75 million euros for the 2021 plan, which will be reinforced with additional private investment.

The minister says this is independent of the 135 million euros that is invested in the affordable measure of rental costs and 150 million euros for the Help-To-Buy program.