Dáil Éireann Debate, Thursday - 29 September 2016
68. Deputy Eamon Ryan asked the Minister for Finance his views on whether the support for first-time buyers being mooted will have an inflationary effect on house pricing consequently defeating the purpose of the proposal in the first place. [27879/16]
Amharc ar fhreagraA key priority for this Government is to develop a fully functioning housing market that responds adequately to the needs of our citizens. To this end the Deputy will be aware that the Government launched 'Rebuilding Ireland - The Action Plan for Housing and Homelessness' last July. Implementation of the plan is being led by the Minister Coveney at the Department for Housing, Planning, Community and Local Government, with cross Departmental support including from my Department.
This comprehensive Action Plan takes a holistic approach in addressing the many interacting structural constraints affecting the housing market in areas such as planning and land use, as well as regulation and skills deficits in the construction sector. While the primary focus of the Action Plan is to tackle structural constraints, fiscal supports can play a supporting and time-bound role in addressing the current problems in the housing sector.
It is in this context that the proposed help-to-buy scheme should be considered. Its role would be to complement the other measures in the Action Plan. The extent to which the scheme could lead to an increase in residential property prices will very much depend on the speed and efficiency with which structural supply constraints are eliminated and residential building activity increases. Therefore, the impact of the help-to-buy scheme on property prices cannot be considered in isolation from the impact of other measures contained in the Action Plan, which are primarily designed to increase supply.
