Making their schemes come true

A call has gone out to all would-be homeowners in Cork to check if they are eligible for 1 of 2 schemes designed to make buying a home more affordable.

The Land Development Agency (LDA) is urging eligible people looking to buy a new home to take advantage of either the First Homes shared equity or Local Authority Affordable Purchase schemes.

The agency also suggested that people looking to purchase a new home should consider applying for homes in existing and future developments.

Homes can be purchased through two different schemes.

Under the First Home Scheme (FHS), the Government in partnership with participating lenders, has introduced a shared equity scheme to first time buyers and other eligible homeowners to bridge the gap between their deposit, mortgage, and the price of a new home.

The LDA said homes are currently available for immediate occupation for private purchasers who qualify under the First Homes Scheme. Under the Local Authority Affordable Purchase scheme, up to a maximum of €75,000 per house is available to bridge the funding gap subject to a purchaser’s qualifying circumstances.

In both cases, purchasers can buy back the First Homes or local authority’s stake at any time but are not obligated to repay it until the ultimate sale of their home.

The call from the LDA comes shortly after Tánaiste Micheál Martin visited a Project Tosaigh development in Clonmore, Mallow, where he spoke to new homeowners who had purchased through the First Homes Scheme.

The Tánaiste said: “The Government has ambitious targets to deliver affordable and cost rental homes and significant progress is being made by the LDA and local authorities. We are conscious of the pressing need to maintain momentum in this regard and to continue to ensure the delivery of more housing, but it is also good to recognise successful projects that are already delivering and to meet and engage with the homeowners who have benefitted from the work and the considerable investment involved.”

Clonmore is a development of 95 A-rated homes, delivered by the LDA in partnership with Cork County Council and the O’Flynn Group.

During his visit, Mr Martin heard from purchasers about how they would have struggled to own a new home were it not for the possibility of buying through the Local Authority Affordable Purchase and First Homes shared equity schemes on offer.

One recent purchaser told the Tánaiste how he was worried about saving for a deposit needed to obtain a full mortgage while also paying rent but was able to bridge the affordability gap as he was eligible to purchase a home under the Local Authority Affordable Purchase scheme.

Other residents discussed the positive timeframe in which they were able to apply for schemes, with some moving into their new home less than 6 months after initially applying.

Cllr Pat Hayes, Deputising for the Mayor of the County of Cork, said: “Clonmore is an excellent example of what can be achieved by local authorities working in partnership with developers and the LDA. The positive impact of such housing can be fully understood when hearing from the homeowners themselves and learning about the difference it has made to their quality of life by people being able to purchase their own home.”

John Coleman, Chief Executive of the LDA said: “I would call on all would-be homeowners to consider purchasing these A-rated houses in Cork. It is vital that they examine the qualifying criteria to determine if they meet them.

“These schemes are open to households who are effectively locked out of the housing market.”