Paudge Connolly (Cavan-Monaghan, Independent)

Does the Minister agree that there appears to be no end to the present spiral in house prices with the advent of 100% mortgages which lending agencies are prepared to give us? The rates drawn up do not reflect the market price. The rates for first-time buyers are punitive. If a person wants to bid more than €381,000 for a house, the price will automatically rise by €11,400 before he or she bids. This works against the first-time buyer, especially when compared with the 4% stamp duty rate in Britain. It is punitive for people in the housing market in this country or who want to move up and keep the property business alive.

Does the Minister agree that the €40,000 stamp duty take on the average house bought last year is punitive? Does he agree with the guidelines for the purchase of a site for a house? People who want to buy a piece of land to move out of a county council house and off the housing list, or from an apartment must pay a rate starting at €10,000. Where does the Minister think this will come from? It moves up in increments of €10,000. This does not reflect the market. The rate for a site for a house costing €100,000 is 7%, it is 8% for a house costing €120,000 and 9% for a house costing €150,000. That is on top of the price of the house. Anyone looking to buy a site in proximity to a town will get nothing for €150,000. This is the case throughout the country. The Minister must agree that these tables must be revised. Has he any intention of revisiting these tables? Will he ensure that they reflect the recent market trends?

House prices have gone through the roof. A house priced at €250,000 seven years ago would have been a mansion whereas this is now the price of a standard house, in particular in the Dublin area. A price of €381,000 does not give first-time buyers a fair opportunity. A total of €2 billion in stamp duty is paid on housing transactions and this is a hefty imposition on people who are trying to better their situation. It is not fair to the consumer and these guidelines should be revised to reflect the market. I ask the Minister again to state his plans for that change and whether he will take on board that pricing structures have gone through the roof.

See this speech in context