Michael McGrath
Ceist:162. Deputy Michael McGrath asked the Minister for Finance if he will respond to a matter raised in correspondence (details supplied) concerning the help-to-buy scheme. [49267/17]
Amharc ar fhreagraTuesday, 21 November 2017
Ceisteanna (162)
Freagraí scríofa
The Help-to-Buy (HTB) incentive is intended to assist first-time purchasers to secure a deposit for a mortgage. In the absence of the measure, many such purchasers would have difficulty securing the required deposit under the Central Bank macro-prudential rules. The incentive is provided for in s. 477C of the Taxes consolidation Act 1997 which states:
'first-time purchaser' means an individual who, at the time of a claim has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;
This definition reflects that used in the Central Bank macro-prudential rules.
In the case of non-first-time purchasers, I accept that there will be instances where there is little equity or negative equity in a previously purchased property.
However, of its nature, the Help-to-Buy incentive is a limited and targeted measure intended to complement the macro-prudential rules. I would also note that, in their recent review of the scheme, Indecon Economic Consultants found that the measure has been implemented in an efficient manner and targets supports for first-time buyers to help them fund the deposit on a house.
I do not propose that the scheme should be extended to non-first-time purchasers.