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Ireland Expands First Home Scheme to Include Apartments

  //house-home.news-articles.net/content/2026/01/0 .. nds-first-home-scheme-to-include-apartments.html
  Published in House and Home on Thursday, January 8th 2026 at 9:26 GMT by RTE Online

Dublin, Ireland - January 8th, 2026 - The Irish government has today announced a significant expansion of the First Home Scheme, now extending eligibility to include new-build apartments. Housing Minister Darragh O'Brien confirmed the move, citing a pressing need to increase housing supply and broaden access to homeownership, particularly for those struggling to enter the property market.

The First Home Scheme, launched initially to address the challenges faced by first-time buyers of new-build houses, operates on a shared equity model. This means the State effectively co-funds the purchase of a property by taking a minority equity stake. This stake, the value of which fluctuates with the property's market value, allows buyers to reduce the size of their mortgage and, crucially, the deposit required. Previously, the scheme was limited to houses, but the decision to include apartments represents a major shift in policy.

"We're responding to the reality on the ground," Minister O'Brien stated in a press conference this morning. "The demand for apartments, especially in urban areas, is incredibly high. By extending the First Home Scheme, we're not only increasing supply but also making homeownership a more attainable goal for a wider range of individuals and families."

The specifics of how the scheme will apply to apartments are still being finalized and are expected to be published within the coming weeks. However, it's understood that the equity stake taken by the State will continue to be calculated based on both the property's value and its location. Properties in high-demand urban centers will likely see a higher equity stake taken by the State compared to those in more rural areas. This tiered approach aims to balance accessibility with the financial implications for the government.

The move has been largely welcomed by industry bodies representing developers and estate agents, who have consistently called for innovative solutions to the housing crisis. They believe the scheme will stimulate construction of apartments, which have been comparatively under-supplied in recent years, and create much needed momentum in the market.

However, the First Home Scheme is not without its critics. Concerns persist regarding the long-term implications of the State holding equity in private homes. Some economists argue that it creates an uneven playing field, potentially distorting the market and leading to artificial inflation in property values. Others question the eventual exit strategy for the State, suggesting a future sell-off of these equity stakes could put further pressure on an already strained housing market.

"While we recognize the good intentions behind the scheme, we need to ensure it's sustainable and doesn't create unintended consequences," said Dr. Eleanor Vance, a leading economist at Trinity College Dublin. "The details of the exit strategy - how and when the State intends to divest its equity - are absolutely crucial. If not managed carefully, it could simply transfer the problem down the line."

The government, however, maintains that the scheme is a necessary intervention in a challenging market. They point to the rising cost of living and the difficulty faced by younger generations in saving for a deposit as justification for their actions. They also emphasize that the scheme is designed to be temporary, with a clear timeframe for the State to recoup its investment.

Furthermore, the scheme's success hinges on developer participation. While initial responses have been positive, ensuring a consistent supply of qualifying apartments will be paramount. The government is reportedly in discussions with developers to incentivize participation and streamline the application process.

The expansion of the First Home Scheme to include apartments is a bold move by the government, signaling a commitment to tackling the housing crisis with innovative, if somewhat controversial, policies. The coming weeks will be crucial as the detailed operational guidelines are released and the market assesses the long-term impact of this significant change.