Dáil Éireann Debate, Wednesday - 27 October 2004
383 Mr. Morgan asked the Minister for the Environment, Heritage and Local Government the cost to the Exchequer of reinstating the first time buyers grant to its pre-abolition level to apply to new and second-hand homes. [26006/04]
Amharc ar fhreagra
In its last full year of operation before its termination in 2003, the new house grant scheme cost €39.3 million. The grant was only available, however, to first-time buyers of new houses of a certain size. Consequently, the estimated annual cost of applying such a grant to first-time purchasers buying either new or second-hand homes would be of the order of €120 million, based on estimates of activity in the housing market this year.
Through overall increases in supply and increasing output under various affordable housing initiatives, the Government is seeking to improve access to home ownership for first time buyers. These targeted measures, in particular, assist low income purchasers and this, in the Government's view, is a better means of improving the affordability of house purchase and using available resources effectively, unlike a general first-time buyer's grant which would over time become absorbed into the house price. Other general measures are in place through the tax system to assist first time buyers, such as stamp duty concessions and improvements made in 2003 to mortgage interest relief.
