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THE GOVERNMENT’S HELP-to-Buy Scheme for first-time buyers of new properties has cost more than previously anticipated.
The scheme, which was first introduced in last year’s budget, provides first-time buyers a grant of up to €20,000.
When introduced in Budget 2017, there were concerns about how much the scheme would cost in total.
The original estimate by the then Finance Minister Michael Noonan was that the plan would cost €50 million.
Answering a parliamentary question on the issue earlier this year, Noonan said the total estimated cost of claims to the Exchequer had cost €20.3 million. A total of €10.1 million represents retrospective claims which were made between period 19 July to 31 December 2016.
Given that the estimated cost for claims approved under the incentive for the first five months of 2017 came to €10.2 million, Noonan, at the time, estimated the cost of the plan to come in on budget.
However, there was speculation the grant would be scrapped in the last Budget due to Housing Minister Eoghan Murphy acknowledging that the controversial incentive was under review.
During the summer, there was a frenzied demand for the grant over fears the scheme was to be wound down in October.
However, the minister chose to continue with the grant scheme in Budget 2018.
As of November this year, the scheme has cost an additional €5.5 million.
The scheme has received over 11,000 applications to date.
Critics of the scheme said it is pushing up house prices rather than encouraging building.
Statistics in respect of the Help-to-Buy scheme, provided to TheJournal.ie by the Revenue Commissioners, show that as of November 11,367 applications were received from one or more applicants.
Over 4,487 claims have been made and 3,882 claims have been approved.
There are two stages involved in the Help-to-Buy process.
The initial application (Stage 1), where applicants provide proof of their mortgage, and Stage 2, the claims stage, where more details and documentary evidence of mortgage drawdown is needed.
However, it is possible that many of the initial applicants may never make a claim to Stage 2 for a variety of reasons.
These could include individuals who do not go on to obtain mortgage approval, who may decide to purchase a second-hand property, or who are not able to source the new home that they desire.
Fianna Fáil’s Housing spokesperson Barry Cowen has been critical of the scheme in the past, stating that the Help-to-Buy scheme has not worked as it was supposed to and stating that the government is not doing enough to assist social housing.
Last month, The Times Ireland Edition reported that the Housing Agency, which advises the government on policy, warned the Department of Housing that the introduction of the HTB scheme would be unwise as it was believed it would increase the asking price for properties.
I would be against selling the land to pay for bad management practices and day to day running. I agree with public service broadcasting but Rte needs a complete overhaul and if they sell the land to pay for running costs in one year then it’s gone and they’ll be back with the begging bowl next year
@The next small thing: tv 3/vergin are in an industrial estate and it doesn’t seem to cause any problems….sell Montrose and move it to one of the many vacant industrial parks around the country
@and the hit’s just keep coming: You are missing his point.Sell it ,yes.But sell for the right reasons….not just to continue and be back to square one.
@The next small thing: If Ryan comes back, they’ll need the money to pay him. His dole money will soon be running out and he will be applying for a job
@The next small thing: The land would most likely end up being sold at less than book value as often happens with state assets, with massive consultancy fees to boot. And then the purchase or rental of a new premises which would require only the best of new fittings.
The whole thing would more than likely be a loss spinner in the end, with tax payer getting shafted again. There is no accountability at all in state or semi state bodies.
@The next small thing:
From a non begeudgery point of view this is bang on.
Yes, and while they’re at it, stop trying to be an entertainment channel, stop buying programs that we can see elsewhere and get rid of the overpaid self-employed “stars”. Stick with news, current affairs, Irish sports and regional programs.
@John Smith:
The problem being some of those bought in programmes are the most popular.
@P.J. Nolan: True, but I don’t think a public service broadcaster should be chasing ratings.
The Cambridge dictionary definition of a public service broadcaster is “television and radio programmes that are broadcast to provide information, advice, or entertainment to the public without trying to make a profit”
At least they got the last part right.
@John Smith: LOL.
@John Smith: A lot of the stuff you are suggesting they stop doing is revenue positive.
It should be shut down with immediate effect.
@Dave Grant: absolutely not, public service broadcasting is essential in any democracy
@Oisin CK: RTE are nothing more than a government mouth piece , nothing of public service in any way shape nor form.
Move the lot to Galway or cork, they will probably drive everyday and claim milage even those without driving license. Place is a disaster, selling up won’t make a difference, just pushing the can down the road. Typical civil service response really.
No. It’ll cost taxpayers more, not less.
The land isn’t the thing causing the problems, but the people on the land.
If they move, different land, same people. What then, sell that new land?
I guess anything to avoid hiring honest, compent people though, yes?
@Chris O’Brien: Alas, competent people get paid more than the low balling Irish people will ever offer.
It should be put into liquidation and rebuilt after.
No more unfair tax like the TV license. If they can’t make it, liquidate
Better still sell off RTE!
Sell and move to the Northside.m
Build social housing on the land..
@Peter McCormack: ah yeah….build a load of free gaffs in Donnybrook d4 and get maybe a couple of hundred back in rent a year.I’d rather it was turned into a park instead.
@John Terry: John showing once again he hasn’t a clue what he’s talking about, how’s the council house you, your parents and your grand parents lived in?
@Martin Mongan: Never lived in a council estate,and neither did any of my family.We are able to work and provide for our families without handouts.
@Martin Mongan: And I’d say from your name you belong to a certain culture that gets everything for free.
@Peter McCormack: what do you mean move RTE to the Northside? Like the ‘cheap’ areas like Sutton, Clontarf, Glasnevin or Howth? If you’re looking for cheaper areas, you’ve plenty to choose from on the Southside, like Dolphin’s Barn and Ballyfermot.
@Lilly Lalogue: exactly lily,anyone that knows Dublin knows it’s an east west divide.
bad idea.Would be sold to some TD’s buddy or relative for pennies and that same buddy would probably build the new studios for the same cost as the new children’s hospital.
It should be taken from them . Rte should not get another penny of our money .
They insisted on showing the British royal coronation even though it was covered on BBC Ch4 utv, They show ( at great expense) British soaps that are available elsewhere. RTE use the same guest pool for all programmes and most are affiliated with RTE .
TH4 Should become the state broadcaster and not westbrit RYE
@barry lyons: Go back to the Stone Age.
RTÉ overstaffed, look at how many it takes to present a football match. Two commentators three pundits and a presenter to start with along with a technical team. That’s only the tip of the iceberg.
Shut it down, sell the land and give cash to Virgin.
Close the place down
Kinda like selling the spare tyre to buy petrol at the moment.
I’m not so sure it makes sense. They will then have to relocate and the start up costs of relocating such an organization would be huge. They could possibly move to Troy studios in Limerick as it is empty but there is a huge amount of work to be done to make it broadcast ready. It doesn’t really make much sense moving just the admin section away because you don’t really gain anything to sell , a lot of admin is in the same building as studios.
They should develop it themselves. A nice cross section of houses & apartments. Don’t sell them but rent them out & use the profits to fund themselves.
@JohnMc: The first sensible comment.
Not sure how much land it own but it almost 9 cares were sold to Cairn Homes for more than €100 million a few years ago. I guess they will sell off more.
@Tom Dillon: €107 million to be precise.
@Tony Peacock: Phew. Glad you cleared that up!
It cost over 50 million to build the lookout tower at Dublin aerport. At irish prices it would cost 200 million to relocate rté. It would be hard to get planning for a broadcasting mast these days.
Not the answer. Slim down the organisation. Fund RTE 1 & RADIO 1 From the Exchequer as public service broadcasters, News , Documtries, Sport etc and home produced drama. Cut RTE 2 , 2FM etc adrift to sink or swim in the commercial market.
If the government is trying to solve rte problems the shud sell the lot it has gone past saving
Sell it and build social houses on it
They can broadcast from TIMBUKTU for all I care as Long as Subscription is brought in.
Is the Pope Catholic.
They should move to Connemara. Worked for TG4
@Martin Holmes: Then people like you would moan at the cost of transportation and the like.
@John Terry: why would i moan about a suggestion i made? Got rejected by a women over west once did ya?
They need to employ better presenters, better producers, better programming!
Why sell and move, which will probably cost us tax payers billions? Simply, get rid of the pen pushers and recruit private sector employees!
I know of one person who was asked to slow down her work rate as she was making others look bad!
Sell up, fill it with modular homes for people and move down the country to Mullingar.
No way. Area is too nice for social housing.
People RTE are paying a photographer 80k a year to take 16 photos a week of the set of Fair City…
The money isn’t in what they produce …
Just like McDonald’s aren’t in the burger business they are in the property business .. don’t sell it.. maximise the return on it!
As long as they build homes for the Irish and nor turn into refugee camps. Also part of the deal is that they scrap the TV licence so we don’t have to look at the muppets such and company and scrap fair city pounces with the the stars nationwide primetime irelands fittest family this and rebuy back the national lottery and stop the money going to a canaindian pension fund. Also have pride and get back Aer Lingus as we have no national airline.
It would be good perhaps to move to Cork or Galway perhaps? Spread the corruption.
Close it down. Jun
RTE should be shut down for good.
Move it to Dundalk as close as possible to the border so it can represent the whole of Ireland.( I support public broadcasting and have just paid my licence fee)
No they should not. Montrose is the perfect and time-honoured place for national broadcasting studios. It is a handy location for interviewees, studio audiences and employees. Moving RTE to somewhere like Blanchardstown would be a disaster.
Surely closing the current site and moving elsewhere would cost a bomb and the juicy price tag would balloon lovely increased wages for the usual suspects. It should shrink its current site (sell parts of) and focus on what it’s meant to do. And do some oul’ wage cuts in the process. Cap wages and have better budgeting and planning and external folks (auditors) making sure they keep within their means. A decent reduction in the license fee would be a kindness to the nation considering this recent farce! Just my opinion.
Sell the kip
Sell all the land and then pack up and feck off to the moon
The grounds were already decimated several years ago when a sizeable chunk was sold off to developers.
@Peter: For the quality they provide you could be forgiven for thinking the whole thing was running from the Cork site already.
Sell the top talent it would raise many billions
Force feeding the people with RTÉ and RTÉ taxes….And threats of lawful but unfair and degrading individual public humiliation is not worthy of Ireland in 2023! It is contemptuous!
A.I it.
It’s like selling your good kidney when the other one is in bad Knick. Madness
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