Mick Wallace (Wexford, Independent) | Oireachtas source

It will continue to be the case that no control will be exercised over property prices or rent levels. The measures are clearly designed to increase demand and will create price inflation. Was one of the factors involved in this decision the beneficial effect these measures would have on property portfolios held by investment funds, vulture funds, real estate investment trusts, REITs, and banks? First-time buyers will be bidding against investors for new builds. The latter can afford to see prices rise, particularly in view of the fact that Ireland has the most attractive residential investment yield in Europe.

What will trigger a review of the effects of the new mortgage lending criteria and how will those effects be monitored? An annual review is planned by the Central Bank. How will the success or failure of the new criteria be measured? This morning, Sharon Donnery of the Central Bank stated that the majority of first-time applicants for loans had in excess of the previous minimum deposit of 20%. If that is the case, what is the rationale for making the proposed changes to mortgage deposit criteria? What statistics and trends underpin the proposed changes? Why has the Central Bank suddenly changed its view that a 20% deposit was the right idea? From where is the pressure is coming? It is certainly not coming from young people because they are not able to exert such pressure. The State must build affordable housing if young people are to purchase houses. This gimmick of a scheme will only drive up prices.

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