Cash from the €400 million scheme can be used for mortgages and deposits for self-builders.

The scheme currently applies to people buying new-build houses and flats in private developments, as well as renters buying a property from a landlord.

Darragh O'Brien, Minister for Housing, Local Government and Heritage, said: "I am delighted that first-time buyers who are building their own homes will now be able to benefit from this scheme.

The scheme has already been successful in helping people to buy new houses and flats in developments and now it will help even more people to start their journey to home ownership.

This is a particularly important development for those who live in rural areas or come from an agricultural background where they have plots of land but don't have all the money they need to build a new home.

"We have designed this programme with flexibility and growth in mind so that it can help as many people as possible. We have previously extended it to help renters looking to buy a home from a landlord and now it's the turn of self-builders."

Self-build customers can apply from Wednesday.

The scheme is available to eligible homebuyers and self-build customers who take out a mortgage from AIB (including its EBS and Haven Mortgages businesses), Bank of Ireland or Permanent TSB.

In the first year since the scheme was launched in July 2022, almost 2,000 homebuyers were approved in 24 counties and almost 500 homes were purchased in 20 counties.

From 1 January, 30 of Ireland's 31 local authority districts extended the eligibility criteria for home ownership by increasing the maximum eligible home limit by €75,000, extending eligibility for the scheme to thousands of additional first-time buyers.

Homes up to €475,000 and flats up to €500,000 are now eligible for the scheme, depending on their location.

Homebuyers in Dublin, Cork, Kildare, Meath and Wicklow received around 80 per cent of on-site approvals, with the remaining around 20 per cent of approvals spread across Ireland's 19 counties.