The prices of new homes under a new affordable purchase scheme will start at €160,000 and reach €250,000, according to newly appointed housing minister Darragh O’Brien.
Mr O'Brien said that the houses on the scheme will be on a “shared equity basis”.
“There’s a whole load of people who are stuck in a rip off rental trap or living with their folks into their late 20s and 30s and saving as much as they can to be able to get that mortgage," he told Newstalk Breakfast.
“Our scheme will be on a shared equity basis, where the state will take an equity in the house as well, it will be a major focus on building affordable homes firstly on state owned land and the state will subsume the cost of that land,” he said.
“You will be looking at house prices in the region of €160,000 - €180,000 to €250,000 on a shared equity basis.”
He said that the scheme has been put in place successfully in Ireland in the past.
“It has been done before quite successfully in Ireland in the 2000s, about 16,000 families got their homes through affordable purchase and that will be one mode of it.”
The minister said that the costings of €160,000 to €250,000 have been “backed up independently” through research.
“It’s based on research we’ve done directly with the department of housing.
“The prices and the costings and the scheme itself is backed up independently and that’s a big focus for us,” he explained.
Mr O’Brien said that this scheme will help the people who are not eligible for social housing but face difficulties in securing a mortgage.
“It’s to give hope to that generation who feel like, ‘when am i ever going to be able to get a home’ and are above social housing limits but are not earning enough to get a mortgage.
“Really, affordability is key,” he added.