Help-To-Buy Scheme Data

Tuesday, 24 October 2017

Questions (76, 90)

Mick Wallace

Question:

76. Deputy Mick Wallace asked the Minister for Finance his views on whether the help-to-buy scheme is contributing to rising house prices (details supplied). [33438/17]

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90. Deputy Joan Burton asked the Minister for Finance the estimated cost to the Exchequer of the retention of the help-to-buy scheme; the anticipated affect this will have on house price inflation over 2018; and if he will make a statement on the matter. [44793/17]

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Written answers

Minister for Finance

I propose to take Questions Nos. 76 and 90 together.

The Help to Buy incentive (HTB) is scheduled to end on 31 December 2019. For each of the years 2018 and 2019, the estimated cost of the incentive is €40 million.

As the Deputies will be aware, I published an independent impact assessment of HTB on Budget day. The report was compiled by Indecon Economic Consultants. Based on the results of a number of analytical approaches, the report found that HTB has not, to date, had a measurable effect on house prices. Rather, rising construction and increased employment are among the principal causes of the recent house price rises.

HTB only came into operation on 1 January 2017 and, as recommended in the assessment, my Department will continue to closely monitor the impacts of the scheme.