The shared-equity scheme may actually be having the opposite effect as builders choose to keep prices below the ceilings for homes to qualify for the scheme, an analysis by KPMG has found.
But vigilance is needed to ensure it does not contribute to inflation, according to the report commissioned by the FHS.
The scheme was set up to help first-time buyers bridge the gap between their mortgage, deposit and the price of a new home.
It is a joint venture between the State and AIB, including subsidiaries EBS and Haven, Bank of Ireland and PTSB. It has €400m in funding.
The findings could be controversial because critics have said the scheme was likely to inflate property prices.
It is required to have regular reviews carried out to establish whether it is contributing to house inflation.
KPMG’s report states: “Overall, our analysis suggests that the FHS has not had a material impact on new-home price inflation to date and has made a positive impact on the accessibility of home ownership and to housing delivery.”
The report says there is a range of factors contributing to inflation in new-home values.
These include construction material price inflation, restricted component availability, increasing preference for more energy-efficient homes and the overall shortage of homes compared with need.
However, the report says the take-up among first-time buyers and home-builders is still growing.
“As the scheme supports a greater proportion of new home transactions, the risk of it contributing to price inflation will rise proportionally,” the report says.
“It remains critical that the FHS monitors this risk on an ongoing basis, including through regular reviews of its price ceilings to ensure it does not contribute to new home price growth.”
The scheme appears to have improved access to home ownership, particularly for single-person households, younger households and older households that would otherwise struggle to secure a mortgage, KPMG said.
Under the scheme, the State provides an interest-free equity for a six-year period for a stake of up to 30pc in the home.
There are maximum property price ceilings for each local authority area.