Oireachtas Joint and Select Committees

Wednesday, 24 November 2021

Committee on Budgetary Oversight

Inflation: Discussion (resumed)

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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That is okay as I am out of time but if there is time after my next question perhaps Dr. Cassidy might comment.

My final question is on the housing market. We are seeing price inflation in the housing market in both rental and residential properties, which is due partly to the pandemic savings being unleashed into the sector that was closed during that period. Such inflation is also due to the undersupply of housing that spans the best part of the past decade. There are also demand-side measures from the Government into the housing market. For example, last year just over 12,000 homes were purchased and over 6,000 of them were through the help-to-buy scheme. Does the Government expect this level of intervention on the demand side comprising the proportion, as it does, of new homes purchased to impact on prices? Does he expect the same effect through the proposed share equity loan scheme that is being considered by the Central Bank? I would appreciate any comments on that.