The First Home Scheme (FHS) provides first-time buyers with an equity stake from the State to facilitate home purchases. While it aims to bridge financial gaps, critics argue it fuels rising house prices. Architect Mel Reynolds warns that if house prices continue to rise, a couple receiving €66,000 through the FHS could find themselves in debt for €106,000 after six years. The initiative, though supported by significant funding, has not sufficiently addressed the housing supply crisis, with new home constructions falling short of government targets, further complicating the affordability issue.
The First Home Scheme may unintentionally lead buyers into deeper debt, with ongoing house price increases forcing them to owe significantly more than initial support.
Given the current trajectory of house prices, first-time buyers are projected to accumulate substantial debt owing to the rising value of their equity stake.
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