Wednesday, 4 June 2014

Questions (36)

Terence Flanagan

Question:

36. Deputy Terence Flanagan asked the Minister for Finance the initiatives in place to assist young persons in securing mortgages; and if he will make a statement on the matter. [23837/14]

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Written answers (Question to Finance)

The recently announced 'Construction Strategy' sets out a comprehensive strategic approach to housing that is being undertaken by Government. As part of this strategy, my Department is committed to examining international best practice, including the concept of a mortgage insurance scheme, to ensure sustainable levels of mortgage lending in the medium term.

The objective of any scheme would be to ensure adequate availability of mortgage finance on affordable terms for new completions, particularly for 'First Time Buyers', as the economy recovers. In doing so we would aim to provide the certainty needed to support greater levels of investment in new housing, with the associated benefits for the construction sector and ultimately for the consumer.

It is important to note that no decision has yet been made and my Department is still at a preliminary stage of investigation. My Department is undertaking an economic impact analysis which will assess the impact such a scheme would have on the Irish housing market. Once this analysis has been completed and presented to me, I will consider the next steps.

 My colleague, the Minister for the Environment, Community and Local Government, Phil Hogan T.D., may be in a position to advise on residential property schemes under the remit of his Department.