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House Prices

Dáil Éireann Debate, Tuesday - 6 October 2020

Tuesday, 6 October 2020

Questions (249)

Neale Richmond

Question:

249. Deputy Neale Richmond asked the Minister for Finance the measures which have been introduced to prevent developers increasing house prices in line with the increases to the help-to-buy scheme; and if he will make a statement on the matter. [28624/20]

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Written answers

The issue of the Help-to-Buy scheme causing house prices to rise was examined by Indecon Economic Consultants in a formal cost benefit analysis of the scheme that was published in October 2018. The analysis concluded that, the primary driver of house prices remained the continued misalignment between demand and supply rather than the Help-to-Buy Scheme.

It is important that we continue to focus on the delivery of additional housing supply. With regard to actual housing completions this year, I am conscious that there is likely to be a significant shortfall in 2020 as compared to the targets which were envisaged in the Rebuilding Ireland Action Plan for Housing and Homelessness. I believe that the enhancement of support provided Help-to-Buy in the July Stimulus Package will help to stimulate construction activity.

Furthermore, I am advised by the Minister for Housing, Local Government and Heritage that there are several initiatives in addition to the Help-to-Buy scheme to assist home buyers with affordability. These include the Rebuilding Ireland Home Loan which is a Government-backed mortgage which is for first-time-buyers nationwide to purchase a new or second-hand home or to self-build. This scheme offers loans on competitive terms to those who are unable to secure a commercial bank loan. Full details of the scheme are available at http://rebuildingirelandhomeloan.ie . Additionally, the Minister for Housing, Local Government and Heritage advises that under his Department's Serviced Sites Fund (SSF), €310 million has been allocated to provide infrastructure to support the delivery of more affordable new homes for purchase or rent in those areas where local authorities have identified and affordability challenge and the viability to deliver homes and below open market purchase prices. Funding under the SSF is available for new-build homes on local authority land. With a maximum of €50,000 funding available per home, at least 6,200 more affordable homes, to buy or rent, can be facilitated. To date, Serviced Sites funding of €127 million has been approved in principle in support of 35 projects in 14 local authority areas, which will assist in the delivery of almost 3,200 affordable homes.

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