Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

Yes, and amendment No. 16. The scheme was introduced as a temporary measure in 2016 with an estimated cost of €130 million over two and a half years. Revenue statistics showed that 23,149 claims for help to buy had been made by the end of 2020 with an estimated cost of €370 million. This is almost three times the amount originally anticipated. Of the 23,149 claims successfully made under the help to buy scheme to the end of 2020, at least 41% of claimants already had a deposit of 10% and, therefore, did not need the scheme.

Figures on help to buy claims as a percentage of new dwelling completions show claims are highest in Leitrim and the midlands, amounting to more than 50% in Meath, and 47% in Kildare. Claims for help to buy represent less than 20% of the new dwelling completions in Dublin, where we often hear of issues of affordability for first-time buyers and the most acute supply constraints. The suggestion is that the help to buy scheme stimulated construction activity in areas where supply constraints are fewer rather than where demand is greatest.

In 2020, there were 6,202 successful claims under the help to buy scheme. A total of 27% of all successful claims were for house prices above €375,000, requiring an income of more than €96,000 to qualify for a mortgage under the lending rules given to a 10% deposit. A total of 61% were for houses priced above €301,000. There have been warnings that the scheme would lead to property price inflation. We had that from the ESRI, the Central Bank and the Parliamentary Budget Office. We know supply is ice cold and demand is red hot. What we see is this scheme and the shared equity loan scheme pumping up demand while failing to increase supply.

Anyone could have told the Minister what the implications of this could be. Since the scheme was enhanced in July 2020, property prices have increased by a further 11% Statewide. I would like to hear the Minister's reasoning and rationale on this. This is a poorly targeted scheme. It is costly. It is not good and sound economic policy.