Key Points:
First time buyer support schemes
- Help to Buy Scheme (HTB)
- First Home Scheme (FTS)
- Rent tax credit
Increase of housing supply
- Reduced VAT on sale of new apartments
- Residential Zoned Land Tax Reform (ZLTR)
- Stamp Duty Residential Rebate Scheme
- Derelict property tax
Many of the Budget 2026’s housing plans aim to help first-time buyers and encourage the building of affordable homes, which is a good thing if done right. Access the full Budget 2026 Announcement on the Gov.ie site.
First Time Buyer Support Schemes
The tried and tested Help to Buy Scheme (HTB) and First Home Scheme (FHS) will continue through into the coming years in their current format. Unfortunately, second-hand homes can only benefit from the FHS if a curent tenant has agreed to buy their rental from their landlord. Since its launch in 2022, 130 tenants manged to purchase their homes availing of the FHS.
Help to Buy (HTB) Scheme for first time buyers
While the scheme remains unchanged, Budget 2026 confirmed the scheme will continue through 2030, with potential extension to 2040. Price ceilings remain the same despite calls to raise this in line with increasing house prices.
First Home Scheme (FHS) for first time buyers
An extra €80 million will be added to the FHS, but like the HTB Scheme, it hasn’t changed in the 2026 Budget. The house price limits are still the same, which is a bit disappointing.
Rent Tax Credit extended
For people renting, the rent tax credit which was due to run out this year will now continue to the end of 2028, at €1,000 per person per year.
Increase of Housing Supply
The government wants to make more land available for building and encourage construction with the new 2026 Budget housing plans.
There’s €5 billion in funding for housing in 2026, which will help with new buildings, social housing, and infrastructure. When you add in lending from the Housing Finance Agency and other places, the total investment is over €9 billion.
To get more houses built, there are new tax breaks for developers.
Reduced VAT on sale of new apartments
Budget 2026 has outlined a reduction in the VAT rate on the sale of completed new apartment sales from 13.5% to 9%, until December 31, 2030. We are only hoping that this will pass down to consumers and reduce purchase prices. This is combined with an Enhanced Corporation Tax Deductions on Construction Expenses.
Residential Zoned Land Tax Reform (ZLTR)
The Residential Zoned Land Tax at 3% of the market value of a site exists since the Finance Act 2021. The purpose of this tax is to stimulate quick delivery of building projects in densely populated residential areas. The process to identify Zoned land is still ongoing with certain exemptions introduced in Budget 2026.
Stamp Duty Residential Rebate Scheme
Residential Development Stamp Duty Refund Scheme will be extended it until the end of 2030. This scheme provides for a partial repayment of the Stamp Duty paid on a deed of conveyance or transfer of land where the land is subsequently developed for residential purposes. This could reduce costs for buyers purchasing new homes.
Derelict property tax
New Derelict Property Tax introduced, replacing the derelict sites levy, with a minimum rate of 7%. Again another attempt to deliver more resitenrial building to the market.
The question remains if Budget 2026 is doing more for developers or First Time Buyer in terms of tangible effects on getting more people on the property ladder.