Budget 2027 plans to lift the tax refund scheme’s cap by €5,000, as housing representatives argue that support for buyers must be matched by more new homes.
First-time buyers purchasing or building a new home could receive up to €35,000 through the Help to Buy scheme under a measure announced as part of Budget 2027.
The proposed increase would raise the maximum relief from €30,000. The scheme is intended to help eligible first-time buyers with the cost of purchasing or building a new home, using a refund of income tax and Deposit Interest Retention Tax (DIRT) paid over the qualifying period.
The change was among the housing measures outlined in the Budget. Its practical value will depend on whether a buyer meets the scheme’s conditions and has paid enough eligible tax to claim the full amount.
Dún Laoghaire-Rathdown councillor welcomes the change
Fine Gael councillor Eoin O’Driscoll, who represents Dún Laoghaire-Rathdown, welcomed the proposed increase. He said the additional €5,000 could help people who are paying rent while trying to save for a deposit.
O’Driscoll said the measure was aimed at people working and saving towards buying a home, and argued that even a relatively modest increase in support could help some buyers complete a purchase.
He also pointed to the role home ownership can play in helping families establish roots and remain in their communities.
The councillor cited figures showing 13,615 Help to Buy claims in Dublin, with a combined value of €309.6 million, by the end of September. The figures were provided without a year in the material available for this article.
O’Driscoll said the scheme’s restriction to new homes made increasing supply in Dún Laoghaire-Rathdown particularly important. He called for development in suitable locations, supported by transport links, schools and other local services.
Scheme applies to qualifying new homes
Help to Buy is a tax refund scheme for eligible first-time buyers of newly built homes and qualifying self-build properties. It does not apply to the purchase of an existing second-hand home.
The maximum claim is subject to the scheme’s rules, including the value of the property and the amount of qualifying tax paid. The €35,000 figure is therefore a maximum, not an automatic payment to every first-time buyer.
The scheme’s design means its benefits are linked to the purchase of new housing. Any increase in the cap is consequently relevant not only to prospective buyers, but also to the supply and price of homes eligible for the relief.
Government says housing supply remains central
Minister for Finance Simon Harris said housing was a major Government priority and referred to €9 billion being spent on building new homes this year.
In his Budget speech, Harris said increasing the supply of homes was the long-term answer to the housing crisis. The Budget also includes an increase in the tax-free threshold for the Rent-a-Room scheme, from €14,000 to €16,000.
The Help to Buy increase is one measure intended to assist buyers, but it does not itself create additional homes. The number of eligible properties available, their location and their price will all affect whether prospective purchasers can make use of the scheme.
Housing Minister plays down risk of higher prices
Minister for Housing James Browne said the increase was not expected to push up house prices. He pointed to the decision to leave unchanged the €500,000 price ceiling for homes eligible under Help to Buy.
Browne said he did not expect the measure to have an inflationary effect. The cap on eligible property prices remains a significant limit on the homes that can qualify.
The Minister had reportedly sought a larger increase, but the Budget measure announced was a €5,000 rise in the maximum relief.
Industry says buyer support could help builders
Shane Dempsey, Director General of the Association of Consulting Engineers of Ireland, said the industry would support an increase to Help to Buy.
He argued that additional assistance could bring some first-time buyers closer to being able to purchase a home. Dempsey also said greater confidence among buyers could give mid-range house builders more certainty about demand, potentially supporting additional construction.
That is an industry view of the measure’s possible effects, rather than a guarantee that the increase will lead to more homes being built.
The policy’s impact will ultimately depend on whether eligible buyers can find new homes within their budgets—and whether housing delivery expands enough to meet demand.
Focus keyword: Help to Buy increase Ireland
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Meta description: Budget 2027 plans to raise Ireland’s Help to Buy maximum to €35,000, while housing representatives say more new homes are needed for first-time buyers.
Image alt text: First-time buyers could qualify for up to €35,000 under the planned Help to Buy increase in Budget 2027.
