Dáil Éireann Debate, Tuesday - 8 July 2014
226. Deputy Maureen O'Sullivan asked the Minister for Finance his plans to introduce a scheme to make provisions for first-time buyers to buy homes and who are unable to buy homes due to the large deposit needed; if this scheme will be in effect this year; and if he will make a statement on the matter. [29905/14]
View answerMy Department is committed, under the construction strategy, to examine the concept of a mortgage insurance scheme and how it might benefit new housing completions in the Irish market. 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 I 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.
My Department is undertaking an economic impact analysis which will assess the impact such a scheme would have on the Irish housing market, taking into consideration time limits, targeting 'First Time Buyers' or owner occupiers and focussing on new housing. Initially, I envisage that any scheme would be limited in nature and targeted to support 'First Time Buyers'. However, I will not pre-empt the outcome of the economic impact assessment from my Department which is currently underway.
The purpose of this initiative will be to promote an increase in housing supply, only where needed. Any scheme I introduce will be designed to more effectively match demand with supply while also aiming to assist 'First Time Buyers'.
The analysis will draw lessons from mortgage insurance initiatives undertaken in other countries and will include questions as to the appropriateness of a price cap as well as regional or geographic restrictions. Once this analysis has been completed and presented to me I will consider next steps.
