New Homes: Starter schemes have a vital role to play
A quiet revolution has been taking place in the Irish new homes market, with a raft of schemes to help buyers, support developers and help ensure continuity and, indeed, boost supply. And, given how far short housing delivery was in 2024 at just over 30,000 units, vs the 40,000 figure that Government, other bodies and indeed commentors told us would be done by the end of ’24, it hardly bears thinking about how much worse it would have been without the new supports. Affordable housing schemes have by now been widely embraced “with initial concerns about the application process now largely eased, driving strong demand,” says by-now seasoned selling agent Suzanne Tyrrell of Cohalan Downing, following on from sales of units in the city’s Bishopstown, at Tower, and Middle Glanmire Road for Cork City Council, and just set now to once again partner with the council on a new affordable housing scheme, Glenmore Heights in Lehenaghmore, launching very soon.Suzanne Tyrrell, director with estate agents Cohalan Downing. Other agents share the consensus about dominance of First Time Buyers (FTBs) in the new homes market with what seen as vital assistance towards affordability from Help to Buy and First Home Scheme, with other initiatives such as Croi Conaithe and Project Tosaigh about to feed apartment supply into the private market this year, in locations like Blackrock village, and the city quays. Such schemes “often make the difference between remaining in the rental market and achieving homeownership. They not only help buyers secure a property, but they also offer stability, allowing them to plan for the future — whether that means putting down roots in a community or starting a family,” says CDA’s Ms Tyrrell. Buyers (including those who qualify under the Fresh Start Principle) can use the Help to Buy Scheme in conjunction with the Affordable Purchase Scheme towards a deposit amount (in order to qualify for the Help to Buy Scheme the mortgage, plus the equity share taken by the local authority must be at least 70% of the market value of the property).While the equity share remains payable, it can be bought out at any time, or just carried forward during the homeowner’s tenure. An example is a FTB applying for a three-bedroom home in an affordable purchase scheme with an open market value of €395,000.Considering their income levels and affordability (gross household income of €75,000) the City Council took a 16% Equity Share reducing the purchase price to €331,800 and the purchasers qualified for the full €30,000 HTB relief towards their deposit. Price is the dominant factor in a market where investor seeking yields are scarce, with location in secondary importance once current or future connectivity and proximity to transport links, employment hubs, schools, and amenities can be assured. Energy efficient homes are also increasingly prioritised. Native Cork buyers might have stronger pulls to certain locations but non-Cork purchasers who now make up a sizeable percentage of buyers “tend to adopt a more flexible and strategic approach, and are generally more open to casting a wider geographical net, prioritising factors like transport infrastructure, commuting potential, and long-term growth prospects over immediate familiarity with an area,” observes Suzanne Tyrrell.
Comments (0)