2026-04-22

We all understand in this House the enormous challenges faced by first-time buyers in securing home ownership. House prices are high, with the median price now at €390,000. With increasing costs in everyday life, it is becoming increasingly difficult for first-time buyers to afford to purchase a property. In this context, I find it deeply unfair and inconceivable that the State imposes an additional cost on first-time buyers in the form of stamp duty. Stamp duty applies to first-time buyers when they purchase a new or second-hand home at a rate of 1%. If we take the purchase price of a house of €450,000, the stamp duty cost for first-time buyers is approximately €4,500. I am surprised that this topic does not generate more discussion and debate. As a government, we have put forward significant supports for first-time buyers, such as the help-to-buy scheme, the local authority home loan, the first home scheme and others. It is totally inconsistent with those policies that we, as a government, on the other hand, impose a cost on first-time buyers in the form of stamp duty. It is estimated that approximately €60 million was collected in 2024 in stamp duty from first-time buyers. That is a very high figure, and it further highlights the burden that is placed on first-time buyers through stamp duty. I am strongly arguing here today that we should reintroduce a relief for first-time buyers on stamp duty up to a certain value of property. That relief was in place before, until 2010. I believe it would be a fair and equitable approach by the Government and would be consistent with our other policies to support first-time buyers. Additionally, in the case of new homes, the help-to-buy scheme applies to first-time buyers, who can claim back their tax for the previous four years, up to a maximum of €30,000. However, when first-time buyers are purchasing second-hand homes, there is effectively no support in place. Introducing a relief on stamp duty for second-hand homes, as well as new homes, would provide additional relief for first-time buyers. We have to continue to find pathways for first-time buyers to secure home ownership. A lot of good policies have come forward from this Government and the increased focus on affordable housing is certainly very welcome. However, as a State, it is urgent that we remove this additional burden in the form of stamp duty. That €4,000 or €5,000 is a hidden cost when someone is purchasing a house. It does not form part of the deposit or the mortgage and it is badly needed by first-time buyers in fitting out a new home and getting themselves established. I would strongly urge the Taoiseach here today to work with Government colleagues to come up with a relief for first-time buyers from stamp duty and to bring this measure forward at the earliest possible time.

I thank the Deputy for raising what is a very important issue for first-time buyers. The entire focus of this Government and the last Government is and was very much on alleviating pressures on first-time buyers but also enabling them to be in a position to buy houses at an affordable level. The positive news is that as a result of measures we have taken, the numbers of first-time buyers drawing down mortgages have increased very significantly as a percentage of overall mortgages over the past five years. It is quite significant. The Deputy is correct in saying that 1% stamp duty on a house value up to €1 million is what is currently there. As he knows, there was a move in the taxation system towards simplification and to keep it very simple and straightforward. We brought in measures to prevent or disincentivise the investment funds and others from buying up blocks of new houses so as to make sure the supply of new houses would be there for individual buyers, and particularly first-time buyers. The Deputy is correct; in 2010, a decision was taken to streamline the stamp duty rate structure for both first-timers and those acquiring their second or subsequent residential property. On what we have done in the last number of years, a suite of measures has been brought in, most notably the help-to-buy scheme, which is quite significant, the affordable purchase schemes and, of course, the first home scheme. They have been very effective in the market. The level of support under the help-to-buy scheme is the lesser of €30,000 or 10% of the purchase price of the new property or the amount of income tax and deposit interest retention tax, DIRT, paid in the four years before the application of the relief. That has proven to be a substantial support for first-time buyers. Then we have a whole range of other provisions, such as the local authority purchase and renovation loan. There are about 6,000 availing of the first home scheme. The vacant property refurbishment grants are also quite substantial in respect of vacant or derelict properties. I think the Minister is looking at extending the first home scheme. In regard to the taxation treatment of it and the stamp duty, that obviously falls for a budgetary consideration. We will - and we will engage on this at Government level - give consideration to that, along with other supports for first-time buyers. I understand the motivation here. We want to enable young people to be in a position to buy houses and affordability is obviously a key factor in that decision. I would not rule anything out and it is certainly something we will give consideration to.

I thank the Taoiseach. I welcome his response and I fully accept what he said about the Government supports for first-time buyers. They have been quite significant and the proof of that is in the figures on mortgage drawdown. There are a high number of first-time buyers in that position to draw down a mortgage and that is welcome. The Taoiseach is also correct on the simplifcation of the system in 2010. I would argue that one of the unintended consequences of that was that it imposed a stamp duty charge on first-time buyers. It is only consistent with our other policies that we would look to introduce a relief on that. I also accept that is something that would have to be discussed in a budgetary context. I repeat here again today, however, that if the Taoiseach can take that up with his colleagues in Cabinet and in particular with the Tánaiste and Minister for Finance, I think it would be the only fair, equitable and consistent approach by Government in parallel with the other supports we have put in place for first-time buyers.

Certainly, and as the Deputy said, help-to-buy is probably the most significant intervention we have taken in the last number of years. We will, at Government level, give consideration to this issue, and to whether there is anything further we can do to help alleviate the pressures on first-time buyers, particularly in terms of the application of stamp duty.