Property price ceiling for First Home Scheme in Mayo needs to be raised

JUST one person in Mayo has availed of the First Home Scheme since it was launched last July.

There have been six approvals in the county - the figure nationally is 2,551.

The government and banks backed initiative is a shared equity scheme to help bridge the gap between a deposit and mortgage for first-time buyers and self-builds.

To qualify, the purchase price of a property or self-build cost must be equal to or below the property price ceiling for the local authority area in which the property is located. In Mayo the ceiling cost is €325,000.

Councillors in Mayo have requested that that figure be raised following a presentation by First Home Scheme CEO Michael Broderick.

Councillor Johnny O'Malley made the point that you wouldn't buy a hen house in his area - Westport - for €200,000. Young people can't get on the property ladder as outsiders are coming in with money and buying houses.

He questioned if the scheme will do any good for young families, as did Councillor Christy Hyland who said young people in Westport face house prices of €350,000 plus.

The quoted rebuild cost for homes affected by pyrite at Pairc na Coille is €450,000, Councillor Peter Flynn pointed out.

The point was also made by Councillor Cyril Burke that hardly any new houses are being built. The big problem is finance for developers.

Mr. Broderick said if there is evidence that the ceiling needs to be raised they were happy to listen to it.

There is no point having a scheme that no one can use but they also didn't want a scheme that would drive up housing inflation, he told elected members.