Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I welcome this response and the fact rent can be considered as part of the forthcoming review later in the year. The Governor said it is directly relevant to the loan-to-income issue more than the loan-to-value issue. However, in practical terms, if someone is buying a house worth €300,000, he or she will have to come up with a deposit of €38,000. He or she will have to find and save that money. The reality is that if he or she is renting and paying €1,000 to €1,500 a month, he or she will find it next to impossible. I welcome the fact this will be considered in the review. However, the Central Bank will need to take into account the simple fact that those renting privately are seriously disadvantaged compared to a first-time buyer who could be in a position, for example, to stay at home with his or her parents. Such first-time buyers can save at a much more accelerated rate.

It is a simple practical reality that affects thousands. People want to have hope and many aspire to owning their own home. We are meeting them on the doorsteps and they inform us they are feeling trapped. They can never see their way to saving that level of a deposit to buy a home. They have to be given some hope.