JUST UNDER 700 homes have been purchased through the first home scheme this year, new figures have revealed.

The schemes third quarter progress report shows that 699 buyers have already completed the purchase of their home using the scheme this year.

Under the scheme, a bank or the state purchases up to a 30% stake in the property, as a defacto loan, alongside the prospective homeowners – who choose to buy back the stake later in their tenure.

Other figures show that the scheme has approved over 2,500 applications, who have yet to drawdown their loan.

The First Home Scheme is now in its second year and was extended to people building their own homes in September.

Speaking on the arrival of the figures, Minister for Housing Darragh O’Brien said the scheme is making “excellent progress” by helping first-time buyers purchase their homes.

O’Brien noted that the number of applications receiving approval and those who have et to drawdown the funds are growing rapidly.

So far, the average purchase price for homes bought through the scheme is €375,000, of which the bank or state is investing approximately €66,000 on average into each.

Almost 4,000 (3,943) new expressions of interest in the loan have been made so far this year.

In July The Journal reported that just 474 homes had been delivered under the scheme. Today’s announcement shows there has been 225 more homes delivered since then.

Chief executive of the scheme Michael Broderick said the group were “very pleased” with the third quarter figures and that the scheme is “seeing very strong momentum in terms of applications, approvals and completions”.

Broderick suggests that this momentum will continue moving forward.

Last month, affordable housing figures showed that less than a quarter of the government’s target, of 5,500, had been reached.

However, the Department of Housing included the number of approved applications in their calculations, not drawdowns. Therefore, it is possible that this figure was much lower.

Breakdown of live approvals by county

The plans to extend the scheme received criticism from housing expert Rory Hearne and Sinn Féin’s housing spokesperson Eoin Ó’Broin, who both express concerns about the extensions potential impact on property prices.

However, today minister O’Brien reiterated his approval of the extension and said that he was “delighted” that the scheme was able to do so.

Houses with prices of up to €475,000 and apartments with prices of up to €500,000 are eligible for the Scheme, depending on their location.

Three banks, AIB (including its subsidiaries EBS and Haven), BOI and Permanent TSB provide funding, along with the state, in the joint-venture. The scheme says it “remains open” for other authorised mortgage lenders in the Irish market to join.