Dáil Éireann Debate, Thursday - 16 January 2014
76. Deputy Bernard J. Durkan asked the Minister for Finance if his attention has been drawn to a shift in savings by private investors to the private housing market with obvious implications for buyers seeking to provide themselves with a family home; and if he will make a statement on the matter. [2112/14]
View answerAs the Deputy may be aware, there has been much commentary of late on an increase in demand for private housing in certain urban areas. Industry reports suggest that a significant portion of property purchase does not rely on credit.
However, I wish to assure the Deputy that this Government has implemented a series of measures which reflect the important role that the banking sector has to play in supplying credit and in doing so to assist buyers seeking to provide themselves with a family home. As shareholders in the main banks, the Government’s objective is to ensure that they are managed commercially so as to create and protect value for the taxpayer but also to ensure that they supply the credit lines necessary to sustain and grow the economy. I am satisfied that the Central Bank is monitoring lending decisions of the banks.
It is not immediately evident that investors who are becoming active again in the market after an absence for some time are necessarily competing for the same property types as borrowers of residential mortgages.
