Eoin Ó Broin
Question:611. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the criteria and methodology used to determine the seven proposed price caps for the shared equity loan scheme. [14042/21]
View answerWednesday, 24 March 2021
Questions (611, 612, 613)
Eoin Ó Broin
Question:612. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the research used by his officials in the design of the shared equity loan scheme; and if he will publish the research. [14043/21]
View answerEoin Ó Broin
Question:613. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if his Department conducted an impact analysis of the proposed shared equity loan scheme on house and apartment prices; and if he will publish such research. [14044/21]
View answerWritten answers
I propose to take Questions Nos. 611 to 613, inclusive, together.
‘Our Shared Future’, the Programme for Government, commits to putting affordability at the heart of the housing system. The €75 allocation in Budget 2021 for the Affordable Purchase Shared Equity Scheme is one measure to deliver on this commitment, with the three-fold objectives of (1) improving access and affordability of new homes for First Time Buyers (2) stimulating an increase in supply by improving confidence as to the viability of future housing developments to meet increased realisable demand, and (3) supporting economic recovery from COVID-19 by encouraging employment in the residential construction and related sectors.
Designing the scheme has involved an analysis of similar international schemes internationally and engagement with a broad range of stakeholders. As a matter of course, full consideration has been given to the potential benefits and risks of the measure taking on board feedback from a broad range of interested stakeholders and commentators. The final scheme design will seek to maximise the benefits in terms of affordability and supply while mitigating potential risks in terms of economic deadweight and house price inflation.
Work on the detailed design of the proposed scheme is ongoing and at an advanced stage. The Scheme is being designed to incentivise first time buyer new build homes in key locations. In terms of price caps, considerations will include seeking to balance a range of issues including the cost of delivering homes, the accessibility of the scheme for potential purchasers and mitigating potential inflationary effects.
My Department has been supported by the Department of Finance, the Housing Agency, and other Government partners and key stakeholders in the development of this scheme. Based on our engagements, I am confident that the detailed design of the proposed scheme, can mitigate potential risks while supporting first time buyers to buy a new home much sooner than would otherwise be the case and in so doing will encourage additional supply to meet this demand.