Vol. 546 No. 4
108 Mr. N. Ahern asked the Minister for the Environment and Local Government the situation regarding persons who complain that first time house buyers were unfairly treated in the budget vis-à-vis the investor; his views on whether this new measure will put pressure on first time buyers; if a reduction in stamp duty can be offered to them; and if he will make a statement on the matter. [32156/01]
The Government has implemented a range of measures to afford greater participation in the housing market for first time buyers and reduce pressure on house prices. These include changes to stamp duty thresholds and rates to ease the burden on first time buyers of second hand houses, to improve their position in relation to other owner occupiers and investors, and to discourage speculative demand, especially at the lower end of the market. In the Finance (No. 2) Act, 2000, the exemption threshold for first time buyers of second hand properties was increased from £60,000 or 76,184 to £150,000 or 190,500.
As a result of these measures, first time buyers now have an increased share of the housing market. This is evidenced both in the increased level of applications for the new house grant, which rose by 7.9% nationally for the first 11 months of 2001 compared to the same period in 2000, and in the loan applications data. In addition, the rate of house price increases continues to moderate, as will be further evidenced in the Housing Statistics Bulletin – September 2001 Quarter – which will be published shortly.
These developments in relation to house prices and the improved position of the first time buyer have allowed the Government to introduce measures in budget 2002 to increase the supply of housing generally, and within the rental sector in particular. The budget measure in relation to interest deductibility, and the changes to the stamp duty regime whereby a common rate will now apply both to investors and to non-first time buyers, will encourage an increase in the supply of rental accommodation. However, the first time purchaser will continue to benefit from lower stamp duty rates than either other owner-occupiers or the investor.
