A special fund set up to help first-time buyers buy a home is almost empty because there has been such strong demand.

Some 5,000 households have made use of the ruling in the first nine months of this year, compared with 4,000 in 2013 as a whole.

The average loan, which is interest free for the first few years, was €30,000. The loan enables home-buyers to buy a house which is more expensive than their current income allows, provided the property is covered by the mortgage guarantee scheme

Research by the construction industry institute EIB says the fund has had a significant impact on the new homes building programme. ‘Thanks to the fund, 8,000 extra new homes have been sold,’ the organisation told the Financieele Dagblad. That is around 10% of total production.

The government and local councils have each pledged to put some €50m into the fund for next year.