Michael Healy-Rae
Ceist:217. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the help-to-buy scheme; and if he will make a statement on the matter. [1265/17]
Amharc ar fhreagraTuesday, 17 January 2017
Ceisteanna (217)
Freagraí scríofa
The Government is conscious that there is currently a shortage of housing and of the particular challenges faced by first-time buyers in obtaining the deposit required to purchase a home, given the Central Bank's macro prudential rules. As the Deputy will be aware, the 'Help to Buy' initiative was initially announced on 19 July 2016 as part of 'Rebuilding Ireland: Action Plan for Housing and Homelessness'. This plan contains a significant volume of responses to the current crisis, of which the Help to Buy initiative is one.
It should be noted that the scheme is not a broad based relief available for the purchase of any home by any buyer. It is instead a targeted response that is aimed at first-time buyers, buying (or building) new residences. This targeting is designed to help encourage the building of new homes, thereby increasing supply, by turning notional demand into real demand. By restricting this initiative solely to new dwellings and new self builds, it is anticipated that the resulting increase in demand for affordable new build homes should encourage the construction industry to provide for an additional supply of such properties.
If the initiative was also available for second hand properties, it would have little or no effect on the provision of additional supply, and thus the scheme would consist primarily of deadweight in terms of incentive effect. As the Deputy will be aware, an increase in the supply of new housing is fundamental to resolving the current crisis.