The party made the call after it was revealed that only 335 applicants used a scheme to provide relief from DIRT for first time buyers.
Spokesperson Michael McGrath said the figures were a "major disappointment".
He said a 'Help-to-Buy' scheme would assist young people starting out to get the money together for a deposit on their new home.
He said: "A chronic lack of supply, exorbitant interest rates, the abolition of mortgage interest relief and the Central Bank rules on deposits have combined to make home ownership increasingly unaffordable for young people. These are the real issues that the government should be focused on if they genuinely want to assist first time buyers.
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"The announcement of the scheme was nothing more than a gimmick to distract attention from the escalating housing crisis. The scheme has not even managed to live up to its very modest expectations as previous parliamentary replies indicate that upwards of 10,000 were expected to benefit. In practice, only a fraction of this number have availed of the scheme.
"Fianna Fáil believes the government should introduce a “Help to Buy” scheme to assist young people starting out to get the money together for a deposit on their new home. This would involve a top up of 25% on individual’s special deposit savings account. It would be a targeted support for families and a far more effective means of assisting First Time Buyers than the current scheme which has had a negligible impact to date."
(CD/MH)
