first time buyers

State-funded grants for First-time Buyers under Labour.

First-time buyers will receive state-funded grants to help them meet strict Central Bank deposit limits, under plans being considered by Environment Minister Alan Kelly.

This news comes as senior Government sources last night said its announcement on a new mortgage arrears plan is now not expected until after the Spring Statement on the economy on April 28.

This is because of continued disagreement between the Coalition over Labour demands to reduce the bankruptcy term from three years to one year.

The new Labour proposals, which are being driven by a number of party backbenchers, are being targeted at couples living in urban areas who cannot meet the deposit rules in order to obtain a mortgage.

The measures will mean the minister directs local authorities to provide cash grants to applicants struggling to get onto the property market in cities such as Dublin, Cork, Limerick and Galway. A similar scheme, which previously saw first-time buyers being given grants of up to £IR3,000, was scrapped in 2002.