Help to Buy Scheme: Boosting the Irish Housing Market and Helping First-Time Home Buyers

Ireland has been attracting much attention as one of the fastest-growing economies in Europe. The significant investment from foreign firms has made Dublin one of the top tech hubs around this part of the globe. And this growth is not showing any signs of slowing down as more companies express their continued interest in putting their money on Ireland. What does this mean for the Irish?

The positive outlook towards the future of Ireland is boosting other parts of the economy – most importantly, real estate. As more people look for jobs in Dublin, there is also a greater demand for housing within the city and surrounding areas like Meath. And, since most of these people are first-time buyers, the government stepped in with the “help to buy” scheme that aims to boost the housing market.

What is the HTB scheme, and how does it work?

The scheme is essentially a tax rebate given to first-time homebuyers allowing them to get a refund of up to 5% of the home’s price. In the case of a self-build, the 5% applies to the value of the property once it is completed. The refund is set at a cap amount of €20,000. Of course, there are finer details to the requirements of the scheme, but suffice it to say that this government initiative shows great promise in attracting residents to invest in real estate and for development companies to supply the demand for new homes.

HTB is a nationwide scheme

The main goal of HTB is to stimulate housing growth and construction around the country. As such, the scheme should benefit the whole of Ireland. But according to earlier reports, most of the construction was concentrated around Dublin, Maydenhayes Meath, and Kildare, where to date, these areas account for 55% of all HTB claims.

Although the numbers in some cities around Ireland are quite low, it is an understandable trend since the demand for new homes is higher in the capital city and its surrounding areas. With more people looking for a better quality of life as well as job opportunities, settlers tend to gravitate towards areas where they are likely to get a high paying job or live comfortably either as a single-income household or one with a growing family.

Will HTB help low-income earners?

Since the scheme is primarily aimed at helping first-time buyers, low-income earners are welcome to benefit from this initiative. However, there is still a significant opportunity for builders to provide affordable housing for individuals who cannot afford more high-end living arrangements.

For homebuyers who can afford the €300,000 to €350,000 price range, on the other hand, there are plenty of developers that built homes in this category. Whether you prefer the greater Dublin area or any of the surrounding suburbs, you will likely find an excellent property to buy.

When does the scheme end?

The initial response to the scheme was highly positive, but the initiative is far from perfect. But the extension of the HTB scheme until the end of 2021 poses an excellent chance for the government to step up and resolve many of the initial issues observed. Indeed, there is more than can be improved in terms of making the scheme work the way it was intended. But there is no doubt that many have benefited, and more can take advantage of the program as it continues to help boost the Irish housing market.

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3 Reasons Why Ireland’s Housing Market is Booming

The global collapse of the real estate market over a decade ago hit Ireland hard. But several years since then, the positive outlook towards the country changed as the economy started to grow steadily. As a result, many cities, especially the capital, have been on the watch list as the hottest locations to invest in real estate across Europe.

Touted as one of the countries with the most promising growth within the last four years, Ireland is indeed attracting attention not only from investors but most importantly from people who want to take advantage of the opportunities that abound in terms of career options and the promise of a better life.

With that in mind, in this article, we will focus on the reasons why Dublin and its surrounding areas are excellent choices for those looking to buy a new home or property.

A better quality of life

In the 2018 Quality of Living report by Mercer, Dublin ranked as the top city across Ireland and the UK for the second year in a row. The reasons cited include political landscape, relatively low air pollution, and the stable sociocultural environment. It is not surprising that new house developments in and around Dublin are attracting settlers from around the country.

For instance, real estate investors are now focusing on building homes in adjacent areas like Meath, where residents can conveniently commute to the capital city in as little as 40 minutes. The advantage of living close to the capital is that you can take advantage of the opportunities, but at the same time avoid the intense hustle and bustle of living in Dublin.

Europe’s technological hub

Perhaps one of the most significant contributing factors to the economic growth of Ireland is the investment in the technology sector. Currently, 16 top tech firms operate here – Amazon, Facebook, Microsoft, and Google are some of these companies. And for businesses, it helps that the country imposes the lowest corporate tax rate, which, according to the Prime Minister, is not likely going to change.

Indeed, tech firms are coming into the city and expanding their operation. This growth is responsible for attracting employees looking to get better jobs at some of the best companies around the world.

Steady support from the government

With incoming investments creating jobs for Irish citizens, it is only natural for residential real estate to be in high demand. This is exactly the kind of boost needed by the housing sector – which is still recovering from the impact of the housing collapse of 2008. Fortunately, the government is helping boost new builds through the Help to Buy scheme.

This initiative aims to stimulate investment in the real estate industry while also making it easier for first-time buyers to ease into home-ownership. Since this government initiative started, approximately 55% of all claims are from cities like Meath and Kildare. This means that there are plenty of housing options for all income levels.

Final thoughts

Right now, Ireland is experiencing steady economic growth, making it one of the most attractive and motivated countries around Europe. The commercial and residential housing market around the country, especially adjacent to the capital city, offers excellent opportunities not only for investors but also for residents who are looking for better living standards. Not only that now is also the best time to take advantage of the government’s initiative to help residents achieve their goal of buying a home.

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