Helen McEntee (Meath East, Fine Gael) | Oireachtas source

I very much welcome the opportunity to speak on this Private Members' motion. It is very topical considering last night's announcement by the Central Bank on mortgage lending. It is an issue which I have followed very closely and something in which I have a very keen interest. County Meath has expanded dramatically in recent years. We have a growing and very young population. The people there are getting into the workforce, continuing to work or getting back to work and they are eager to buy their own home for the first time. I made submissions to the Central Bank on mortgage lending on their behalf and I am very happy the Central Bank listened and recognised the financial pressures faced by young house hunters by not proceeding with what would have been a very prohibitive 20% mortgage deposit proposal for first-time buyers. It is an extremely important statement and sends out a message to this cohort of people that we are listening and trying to help.

We must acknowledge the housing market was severely affected by the downturn in the economy. This happened mainly due to a poorly regulated banking sector, inappropriate fiscal policies and beyond lackadaisical lending standards. People paid through the roof for properties which were worth half of what was paid. Having seen the property bubble burst we have been left to pick up the pieces. As my colleague mentioned, the principle is to ensure people can only buy what they can afford, so there will be no more 100% or 120% mortgage lending. We must ensure those days are over. The new arrangement will give space to my generation, who were in their twenties when the economy collapsed. They do not have Celtic tiger debts, are possibly working and have some savings, and can afford to buy a home with a 10% mortgage deposit. The new arrangements, whereby second-time buyers will have to produce 20% deposits, will in some way address the position of landlordism. Some people might wonder what I mean by this. Recently a television programme, which focused on London, essentially stated we were going back in time to when we had landlords and tenants in a very unequal society. None of us wants to go back there.

The people who are not helped by this arrangement are the most unfortunate victims of the previous Government's economic policies. They are those in negative equity who bought an apartment or a house at a price which was through the roof and which they have outgrown. It will be extremely difficult for them to gather 20% of the cost of a new home. It was deeply ironic that I should listen to my local radio station this morning to hear a member of Fianna Fáil speaking of dissatisfaction with the new regulations and speaking up about the problems of this generation which it alone caused. I received an e-mail from a gentleman to this effect, outlining his situation. In 2012, the Government introduced an interest relief scheme for first-time buyers who took out mortgages between 2004 and 2008. This has helped thousands of people, but we need to do more and we need to work with the Central Bank to identify a solution for those people who have not been helped. Unfortunately it is much harder to regulate in retrospect.

We have come a long way in a few short years. Just a few years ago people could not even apply for mortgages and the banks were closed for business. The recent announcement shows the fact we are regulating this again and we have come a long way.

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