First Home Scheme

The First Home Scheme (FHS) is a shared equity scheme launched in Ireland on 7 July 2022. It aims to help individuals and households looking to purchase a property, by providing supplemental funding in the form of an equity share, to be used in addition to the deposit and mortgage, so that the potential homebuyer can afford the price of their home.

The scheme is a joint venture between the state and participating banks. Potential applications can apply for up to 30% of the cost of the home, in return for a percentage share in the property purchased. As of 2022, it was available to new homebuyers up until 2025, with the potential to extend this timeframe.

Background
The First Home Scheme was announced by the Irish government in September 2021 as part of the "Housing for all Strategy". The scheme was established by the Department of Housing, Local Government and Heritage in conjunction with participating financial institutions.

The fund provides a percentage of the purchase price of the property in the form of an equity share, up to a specified amount. Homebuyers can apply for up to 30% of the cost of a new home, or up to 20% if they are also availing of the Help to Buy scheme. Property price ceilings per local authority area apply to eligible properties within the scheme, which include both houses and apartments. Property price ceilings are reviewed on a six-monthly basis to ensure that they reflect current house and apartment prices by local authority area. All, or part, of the equity share can be bought back by the homeowner at any time. While there is no obligation to pay off the equity, or associated service charges, the property owner's "estate" would have to pay if the owner died.

Extensions
On 17 April 2023, the scheme was extended to include tenants seeking to purchase the home they are renting and who have been served a notice of termination. This is referred to as the Tenant Home Purchase Scheme.

In September 2023, the scheme was extended to include self-build homes.