Dáil Éireann Debate, Wednesday - 18 May 2016
49. Deputy Bernard J. Durkan asked the Minister for Finance the steps he will take to incentivise the construction sector in a way that benefits the consumer with particular reference to first time house builders or purchasers; and if he will make a statement on the matter. [10843/16]
Amharc ar fhreagraThe recovery in the economy and the increase in the number of people at work has significantly contributed to an increased level of demand for housing.
While there is evidence of a pick-up in housing supply, it is still far from the level necessary to meet demand. From my perspective, a number of measures have been implemented to help address the underlying problems, either directly by myself or by some of the agencies that come under the auspices of my Department. One example is the Ireland Strategic Investment Fund (ISIF) €500 million joint venture (Activate Capital) to make funding available to the house building sector. I also introduced an increased deduction for mortgage interest relief for landlords that commit to the provision of rental accommodation, for a minimum of three year, for tenants receiving social housing supports. NAMA has also committed to support the delivery of up to 20,000 residential units by the end of 2020.
However, more needs to be done given the housing supply shortage.
To restore the housing market to a sustainable equilibrium, this Government has set an ambitious target, in the Programme for Government, of ensuring that 25,000 additional new houses are built each year by 2020. To achieve this target the Government has committed to implement a number of policy actions designed to help address the outstanding bottlenecks in the housing and construction sector and restore supply to the optimal level.
As regards first time buyers, the Government is cognisant of the particular difficulties facing this group. The Programme for Government, therefore, contains a number of policy proposals designed to support first time buyers such as the proposal to work with the Central Bank, as part of its review of the mortgage lending rules, to develop a new "Help to Buy" scheme.
