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The Irish Equity Loan

A significant proportion of Irish households are caught in a situation where their borrowing, and by extension, purchasing power is not sufficient to buy a new build home on key transport corridors and in urban centres. Of the 21,241 new homes completed in 2019, just 4,334 (approximately 20%) became homes for First Time Buyers. This relative lack of First Time Buyers’ presence reflects primarily those individuals and families in this ‘Locked-Out Generation’ cohort who do not qualify for social housing supports and cannot afford a new A-rated home of their own.

This paper outlines a considered and balanced equity loan scheme for Ireland.  The structure is modelled on the experience of the Homes England scheme. However, this paper acknowledges that the Homes England scheme has some shortcomings, particularly its lack of qualifying criteria and that it is not focused on helping specific cohorts of household incomes.  Therefore, the suggested Irish structure includes additional qualifying criteria to ensure it is appropriately focused on helping to create a fair society, while in parallel ensuring the scheme does not drive house price inflation.
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