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First Home Scheme: 5,000 Purchases & Ireland’s Housing Shortage

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Ireland’s First Home Scheme has facilitated its 5,000th property purchase, marking a significant milestone for the government-backed initiative designed to assist prospective homeowners. The scheme, launched in July 2022, provides shared equity funding to eligible buyers, reducing the upfront cost of purchasing a property.

The First Home Scheme operates by the state and participating banks taking a minority equity stake – up to 30% – in a property, alongside the buyer’s deposit, and mortgage. This reduces the amount a buyer needs to save and borrow. The scheme was announced in September 2021 as part of the Irish government’s “Housing for All Strategy,” according to official documentation.

Currently, the scheme is available nationwide to first-time buyers and those considered ‘fresh start’ applicants, as well as individuals building their own homes. A separate iteration, the Tenant Home Purchase Scheme, supports those buying properties from landlords who are selling. Eligibility criteria include not having previously owned a property in Ireland or abroad.

The amount of funding available is linked to the property’s price, with a maximum of 30% equity support for latest homes, and 20% for those also utilizing the Help to Buy scheme. Property price ceilings, which are reviewed every six months, vary by local authority area to reflect current market values.

Homeowners retain the option to buy back the state’s equity share at any time. Though, the cost of doing so is tied to the property’s current market value. An example provided by the scheme illustrates that if a property purchased with a 10% equity share from the First Home Scheme increases in value from €350,000 to €400,000, the cost to redeem the equity share would rise from €35,000 to €40,000, plus any applicable service charges.

The scheme’s success comes amid ongoing concerns about housing affordability and availability in Ireland. Although the First Home Scheme aims to address these challenges, some observers have noted that a shortage of new homes may be impacting the scheme’s overall take-up rate.

The Department of Housing, Local Government and Heritage, in conjunction with participating financial institutions, manages the fund. As of January 5, 2026, the scheme remains open to applications, with the initial timeframe of availability extending to 2025, and potential for further extension.

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News

Dublin House Prices Hit €500k Median – Market Still Faces Shortage

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The median price of a home in Dublin has reached €500,000, as Ireland’s housing shortage continues to impact the property market. Data released by the Central Statistics Office (CSO) indicates that property prices nationally increased by 7 per cent in 2025, though the rate of growth has slowed from 8.7 per cent the previous year.

The Dublin market exhibits significant internal variation. In Dun Laoghaire-Rathdown, the median house price now stands at €679,999, while in Fingal, it is €475,000. Nationally, the median price paid for a home in 2025 was €387,000. Outside of Dublin, Wicklow recorded the highest median price at €454,000, while Donegal remained the most affordable county, with a median price of €195,000.

The slower pace of price increases, while notable, has not translated into improved affordability for prospective buyers. The 7 per cent national increase outpaces average wage growth, continuing to squeeze purchasing power. Dublin experienced a price rise of 5.6 per cent, while prices outside the capital increased by 8.1 per cent compared to December 2024.

The cost of modern homes also saw an increase, with residential property prices for new dwellings in the fourth quarter of 2025 being 6 per cent higher than in the same period of 2024. This follows a 5.5 per cent annual increase in the cost of new dwellings over the preceding 12 months. Experts anticipate that house prices will continue to rise, projecting a further increase of 3-5 per cent in 2026.

The Government’s housing plan aims to deliver a minimum of 300,000 new homes by 2030, but concerns are mounting over the feasibility of this target. A slowdown in the commencement of new builds is raising questions about whether the ambitious goal can be met. While new home completions increased by 20 per cent to 36,000 in 2025, the Central Bank forecasts completions will reach 37,000, 40,500, and 44,500 in 2026, 2027, and 2028 respectively – figures that fall short of the Government’s target of over 50,000 homes annually.

Brokers Ireland has described the market as “dysfunctional,” stating that aspiring homebuyers are increasingly reliant on larger mortgages. Rachel McGovern, Deputy Chief Executive of Brokers Ireland, noted that the sustained price increases are forcing buyers to capture on higher levels of debt. “This means that the two-thirds of buyers who need mortgages to purchase are taking on higher levels of debt, squeezing affordability,” she said. Despite the challenges, McGovern acknowledged that first-time buyers often perceive homeownership as a better long-term investment than renting, given the high cost of rental accommodation.

Ross Lynch, a senior mortgage advisor at NFP Ireland, observed that 2025 ended with a strengthening housing market, with the rate of house price growth accelerating in December. “Prospective sellers will be cheered by the uptick in the rate of house price growth,” Lynch stated. Yet, he cautioned that the acceleration in price growth is likely to exacerbate affordability issues for buyers, particularly first-time buyers in areas with high demand and limited supply.

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News

Ireland: Councils Made 1 Derelict Building CPO Application Last Month

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Ireland’s councils initiated a compulsory purchase order (CPO) on a single derelict property in County Waterford last month, according to reporting from The Journal.

The CPO process allows public bodies to acquire land, even if the owner is unwilling to sell. The case in Waterford represents the sole application of this power by Irish councils in January 2026, highlighting a limited use of available tools to address vacant and derelict buildings.

A Compulsory Purchase Order Activation Programme, launched in April 2023, aims to assist local authorities in utilizing their legal powers to acquire vacant or derelict properties when owners are uncooperative or cannot be located. The program is designed to prevent properties from remaining empty and deteriorating.

The Department of Housing, Local Government and Heritage introduced the activation program to encourage councils to actively tackle the issue of vacant properties. Teams within councils – including Vacant Homes Officers, Derelict Sites Teams, Town Regeneration Officers, and Social Housing Teams – are tasked with identifying properties, contacting owners, offering support for renovation, and, as a last resort, initiating CPOs.

Funding for these acquisitions and subsequent redevelopment is available through several sources, including the Urban Regeneration and Development Fund (URDF), the Social Housing Investment Programme, and the Housing Finance Agency. Councils are required to establish targets, track their progress, and report their results as part of the Delivering Homes, Building Communities plan.

The limited number of CPOs initiated in January, as reported by The Journal, contrasts with the broader goals of the CPO Activation Programme and the funding mechanisms available to councils. Data on the overall achievements of the program will be published annually.

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Economy

Broken System, Broken Dreams: The Bidding Chaos in Irish Real Estate

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Ireland’s Housing Market: Bidding Wars and Growing Frustration

Table of Contents

Dublin, Ireland – A sense of widespread discontent is brewing among prospective homebuyers in Ireland as increasingly competitive Bidding wars and perceptions of unfair practices dominate the Housing market. Reports of escalating prices, driven by Open auctions and a limited supply, are fueling concerns that the system is fundamentally flawed.

The Intensifying Competition

Recent accounts from individuals attempting to purchase Homes reveal a highly stressful and often demoralizing experience. Potential Buyers describe situations where properties are significantly underpriced, leading to frenzied Bidding that quickly escalates beyond realistic affordability. These “madness” scenarios, as described by many, are becoming increasingly common, notably in urban areas like Dublin and Cork.

Auction Dynamics and Market Pressures

Open auctions, while a customary method of Sale, are drawing criticism for exacerbating the problem of overbidding. The Economic and Social Research Institute (ESRI) have noted that this system encourages Buyers to push prices higher than thay might otherwise be willing to pay, creating an artificial inflation of property values. A recent report from the Central Statistics Office (CSO),released in January 2026,indicated a 6.8% increase in national Home prices year-on-year, a trend that shows no immediate sign of slowing.

Consumer Sentiment and Trust

The level of distrust among aspiring Homeowners is alarming. surveys indicate that approximately one-third of those attempting to buy Homes fear they will be subjected to unfair practices or overcharged. This sentiment is further compounded by a perception that the current system favors those with greater financial resources, leaving many feeling excluded from the dream of Homeownership. The Irish Times reported earlier this year on growing calls for increased transparency in the Sales process, including clearer guidance on appropriate Bidding strategies.

A Look at the Numbers

Here’s a quick overview of key market indicators:

Indicator Current Value (Feb 2026) Year-over-Year Change
National Home Price Increase 6.8% +2.5%
Average Time to Sale 8 weeks -1 week
Percentage of Homes Sold Above Asking price 72% +10%

Source: Central Statistics Office (CSO), February 2026

Goverment Response and Potential Reforms

the Housing Minister has acknowledged that aspects of the Homebuying process are “archaic” and in need of modernization. While specific policy changes are still under discussion,there is growing support for measures to increase transparency,regulate auction practices,and ensure fair access to Housing for all citizens. The government is also exploring options to incentivize the construction of affordable Homes and address the chronic shortage of supply which is the major driving factor behind the crisis.

Looking Ahead: What’s Next for Irish Housing?

The current situation demands a thorough and collaborative approach to address the shortcomings in the Irish Housing market. This includes not only regulatory reforms but also a renewed commitment to increasing Housing supply and fostering greater trust between Buyers and Sellers. Addressing these challenges is crucial for ensuring that Homeownership remains a realistic aspiration for future generations.

What are your experiences with bidding on a Home in Ireland? Do you believe the current system is fair and obvious?

Share your thoughts in the comments below and let’s continue the conversation.

What are the main causes of bidding wars in the Irish property market?

Broken System, Broken Dreams: The Bidding Chaos in Irish Real Estate

The Irish property market, once again, finds itself in the throes of a bidding war frenzy.but this isn’t the boom of the 2000s. This feels…different. It’s a system straining under pressure, leaving prospective homeowners disillusioned and questioning the fairness of the process. The dream of homeownership feels increasingly out of reach for many, not due too affordability alone, but due to the sheer chaos surrounding securing a property.

Understanding the Current Landscape: Demand vs. Supply

The core issue remains a significant imbalance between housing supply and demand. Years of underbuilding, coupled with population growth and inward migration, have created a perfect storm. This scarcity drives up prices, but it’s the way properties are being sold that’s exacerbating the problem.

* Limited Stock: The number of properties coming onto the market consistently fails to meet demand, notably in urban areas like Dublin, Cork, and Galway.

* Population Growth: Ireland’s population continues to rise, increasing the number of households competing for the same limited housing stock.

* Investment Funds: The increasing presence of Real Estate Investment Trusts (REITs) and other investment funds in the market adds another layer of competition, frequently enough with cash offers that individual buyers struggle to match.

The Tactics Driving the Bidding Wars

The conventional auction system, while still present, is increasingly being bypassed in favour of ‘sealed bid’ processes and, more controversially, ‘silent auctions’. These methods, while legal, often lack openness and can lead to inflated prices.

  1. Sealed Bids: Buyers submit their best offer in writing, without knowing what others are offering. This can lead to overbidding as people try to anticipate the competition.
  2. Silent Auctions: Agents may subtly reveal the highest bid to other interested parties, prompting them to increase their offers – a practice that skirts the line of ethical conduct.
  3. ‘Gazumping’ Remains a Problem: Although less prevalent than in the past, the practice of a seller accepting a higher offer from another buyer after accepting an initial offer still occurs, causing significant distress and financial loss to the original buyer.
  4. cash Buyers advantage: Offers from cash buyers are often prioritized, leaving those reliant on mortgage approval at a distinct disadvantage.

The Impact on First-Time Buyers

The current system disproportionately impacts first-time buyers. Saving for a deposit is already a monumental task,but navigating the bidding process adds another layer of stress and financial burden.

* Deposit Strain: Repeatedly losing out on properties means continually re-saving deposits, delaying homeownership for years.

* Mortgage Approval Issues: mortgage approvals typically have an expiry date. Losing out on multiple bids can mean having to reapply for approval, potentially facing stricter lending criteria.

* Emotional Toll: The constant rejection and uncertainty take a significant emotional toll on prospective homeowners.

Case Study: The Dublin New Home Market (2025)

In late 2025, a new growth of 50 houses in a Dublin suburb received over 500 applications. The developer opted for a ‘silent auction’ approach. Initial asking prices were around €450,000, but final sale prices averaged over €520,000 – a 15% increase driven solely by competitive bidding. Several first-time buyers, pre-approved for mortgages up to €500,000, were priced out of the market. This example highlights the extent of the price inflation and the challenges faced by those with limited budgets.

What Can Be Done? Potential Solutions

Addressing this crisis requires a multi-pronged approach involving government intervention, increased transparency, and a shift in industry practices.

* Increased Housing Supply: The most obvious solution – significantly increasing the supply of new homes, particularly affordable housing. This requires streamlining planning permissions and incentivizing developers.

* Transparency in Bidding: Implementing regulations requiring greater transparency in the bidding process, potentially including a standardized bidding form and a requirement for agents to disclose the number of bids received.

* Protecting First-Time Buyers: Exploring measures to protect first-time buyers, such as a ‘cooling-off’ period after a bid is accepted, allowing them time to finalize financing without fear of being gazumped.

* Regulation of Investment Funds: Examining the role of investment funds in the market and considering regulations to prevent them from artificially inflating prices.

* Review of Auctioneer Practices: A thorough review of auctioneer practices, with stricter enforcement of ethical guidelines.

Practical Tips for Navigating the Market

despite the challenges, prospective buyers can take steps to improve their chances:

* get Mortgage Approval in principle: This demonstrates your seriousness to sellers and agents.

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