Cork couple have lost their seven-year legal battle with the Government over a first-time buyers grant, but the state has stepped in to say it will not pursue its High Court costs.

Don and Tara Ellis rushed to purchase their 180,000 house in Heatherview, Glanmire in 2002 when they discovered the Government was scrapping the grant on November the 14th that year.

They won their Circuit court action earlier this year but the State appealed this today.

Seemed like a big risk to take for the small amount involved in the grant. I'm sure a lot of people will be wondering why the state isn't looking for costs.