Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will just make three points in response to the issues raised, and I will confine them to what was said about the help-to-buy scheme before I get onto broader housing issues. The total proportion of house transactions, for the last year I have available to me, 2021, that were covered by help-to-buy was approximately 13%, up from 12.7% in 2020. I do not accept that a scheme that covers such a minority of the total number of house purchases and transactions within the State has the inflationary effect the Deputies claimed.

In regard to the Mazars report that was brought forward, which Deputies referred to, they are correct. I have taken a stance different from some of the recommendations in the report, but they omitted to point out that the report recommended the scheme be continued for a further two years. On the issue of pricing, the report states, "There is not definitive evidence that [help-to-buy] pushed up the price of new houses". On the impact of output, it states, "As a demand side impact [it] did not appear to have much impact on prices". With regard to supply, it states, "The data analysis in this regard is inconclusive, although the output of certain types of houses – 3 bed semis in particular – did increase and some areas likely experienced higher output than they would otherwise have seen". The report does not say there is definitive evidence the scheme has had an impact on pricing, although it does indicate that there is some evidence it could have had an impact on supply.

As for the points made about deadweight, I accept that the need to include self-builds and to allow those who build their own homes to access help-to-buy means there is an element of deadweight associated with the scheme. However, the Deputies opposite me are saying they would not give any support to the 5,477 people who bought their own homes this year, the vast majority of whom are not on the affordable purchase schemes, which are only growing, because they would remove help-to-buy. The Deputies' view is that those 5,477 people and the 7,673 people who received help from help-to-buy in building up their deposits should not have received that support and that this scheme should not be in place. I differ with the Deputies on that. It has been a long-standing feature of the Irish tax code or expenditure policy for many years that some help is provided in the purchase of one's first home. The design of any scheme - and I have considered alternatives to help-to-buy for many years - will have pros and cons. I believe it is appropriate that we look to offer help to somebody buying his or her first home. I do not accept that a scheme that influences 13% of transactions has the kind of inflationary effect the Deputies allege.

To be clear, it is absolutely not my intention, nor is it an explicit aim of the Government's housing policy, to drive up property prices. I accept that prices have been going up, but we are trying to moderate them and to bring them down through increased supply of homes. It is worth acknowledging that in the 12 months up to September of this year, close to 28,000 homes or units were completed, which is one third higher than the figure for the same period a year ago.

I wish to indicate that I may bring forward some amendments in this area on Report Stage.