In one of the most eye-catching measures of this year’s budget, the Housing Authority will now pay half the cost of a property for young and low-income buyers who cannot afford to purchase a home outright.

The initiative, an expansion of the existing Equity Sharing Scheme, will be open to applicants as young as 25 — a lowering of the current age limit of 30. Under the scheme, the buyer and the Housing Authority will co-own the property, with the buyer gradually repurchasing the Authority’s share over time.

The reform is a structural fix for affordability and addresses the growing divide between stagnant wages and soaring property prices that have kept younger generations locked out of home ownership.

Tax Relief For Inherited Homes Doubled

The budget also doubles the tax relief threshold for people inheriting a home they already live in.
Currently, heirs pay a discounted 3.5% tax on the first €200,000 of the property’s value. That threshold will now increase to €400,000, easing the financial burden on adult children inheriting their parents’ home.

Deposit Scheme Extended To €250,000 Properties

The government is also extending the 10% deposit scheme for first-time buyers.
Under this scheme, the Housing Authority covers the deposit upfront, with beneficiaries allowed to repay the amount interest-free over 10 years.

The property value limit has been raised from €225,000 to €250,000, reflecting higher market prices.

Support For Elderly Couples In Care Homes

Elderly couples living in care homes will see a reduction in how much of their pension is taken as payment.

The contribution rate will drop from 60% to 50%, while those previously paying 80% will see this reduced to 70%.