Significant news for aspiring homeowners across Ireland as the government’s First Home Scheme (FHS) has been extended to June 2027, accompanied by an additional €30 million in funding and increased property price ceilings in 16 local authority areas. This vital expansion, effective from July 1st, aims to significantly enhance accessibility to homeownership for first-time buyers navigating the challenges of rising property costs.
The First Home Scheme, now backed by a total commitment of €740 million (€370 million from the State and an equal amount from participating banks), was originally launched in July 2022. It is designed as a shared equity initiative to bridge the funding gap for eligible first-time buyers and other qualified homebuyers. The scheme can cover up to 30% of a new build’s cost (or 20% if combined with the Help to Buy Scheme) in exchange for an equity stake, which homeowners can later buy back. The scheme also extends to self-builds and rented homes being sold by landlords.
The extension of the scheme to June 2027 was widely welcomed by political figures across the country. Fine Gael TD Paula Butterly and Fianna Fáil TD Erin McGreehan in Louth expressed their delight, with Deputy McGreehan stating the increase in price ceilings will allow “more first-time buyers avail of the First Home Scheme” in the county. Similarly, Tipperary TDs Michael Lowry and Michael Murphy lauded the “essential” extension, highlighting the scheme’s success in responding to affordable housing needs.
Since its inception, the FHS has demonstrated strong interest and impact. By the end of Q1 2025, over 3,300 homes had been purchased or built, with more than 6,700 buyers approved for the scheme nationwide. The first three months of 2025 saw a notable surge in engagement, with new applications increasing by 49% and approvals by 51% compared to Q4 2024.
The latest review has resulted in increased price ceilings across the 16 affected areas, with most seeing a €25,000 rise. This means a greater number of individuals previously just above the eligibility threshold can now qualify for support. Specific increases include Louth, where the ceiling has risen to €425,000, and Mayo, now at €400,000. Larger urban centres like Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin, and Co. Wicklow now have a uniform €500,000 ceiling for all properties.
The scheme’s twice-yearly reviews of its price ceilings ensure its effectiveness in supporting housing supply without distorting local markets. This extended and well-resourced scheme is set to continue providing crucial support to those aspiring to get on the property ladder across Ireland.
