TD raises concern over first house plan on Louth/Meath border

A local TD fears that first-time home buyers buying property on the wrong side of the lauth-meath border will be unfairly penalized under the rules of the First Home scheme launched last month.

In Gail deputy, Fergus O’Dowd, has pointed out that the same type of house, in the same property, can cost a Meath couple significantly more than their Louth counterparts.

The First Home scheme, launched on July 7, supports first-time buyers in buying new homes and apartments in the private market through the use of equity share model. The plan uses regional price ranges based on the average prices of new-built homes purchased by first-time buyers in each region.

This approach is being adopted to target the support of the scheme on purchases in the lower part of the price distribution in each sector, and to stimulate additional housing supply at this stage, to mitigate any inflationary pressures.

However, discrepancies arise at county boundaries.

“I have already raised my concerns with respect to the settlement areas in Drogheda that span both County Louth and County Meath respectively, my concerns remain that there is much more to the Meath side than the homes at one end of a property. The hat will be at the other end of the property in Louth,” said Deputy O’Dowd.

He said he has asked Housing Minister Darragh O’Brien “if CSO settlement areas could be considered for use in this plan, where towns and villages have two county boundaries where parity for purchases under the plan could be considered.” Caps to do are quite different.

“My other serious concern concerns the caps as they stand,” O’Dowd said. “A developer starting a new phase in Drogheda at the end of this summer has advised that standard 3 bed new construction will start at €365,000. This is €65,000 more for the first house that it will purchase under the plan. makes it ineligible.

“On an estimate of 5 developments, in the Drogheda/Bettistown/Dulik areas of Company Meath, new build homes for a standard 3 bed again start at a minimum of €365,000. This is over the limit of €15,000. Which again is a potential first time Will make buyers ineligible.

“Given the broader Drogheda region and its proximity to Dublin, in many cases CAP will struggle to meet the cost of new construction for a standard 3 bed house, particularly Louth CAP, and this is why I There are fears that the plan will be largely unattainable for many individuals and families exploring the area.

“While I welcome the overall strategy, I am extremely concerned that the problem with the current hike in home prices will only increase in the months and years to come.

Minister O’Brien said, “Any system of geographically based price ranges would necessarily require defined limits. Essentially, this would result in examples of homes with different price ranges on either side of the given range.” However, when considered as a whole, I believe the system will reflect broad price trends, and represent a clear, easily understandable method for using appropriate price ranges.

“First Home Plan Ireland Designated Activity Company is now responsible for maintaining and reviewing or updating price ranges at the national level. First Home Plan confirms that the roof is installed for six months after operation and periodically thereafter. This review of the methodology and underlying data will ensure that any limitations allow the plan to meet its underlying objectives.