Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The various indices about increases in house prices are largely applicable to second-hand houses. The help-to-buy scheme does not impact on the price of second-hand houses at all. In any economic model the generation of extra supply should act as a downward pressure, easing the demand for second-hand houses if people can buy new houses instead. Since the scheme is for people principally buying starter homes, then it is an incentive to put a deposit together. Since the house does not exist until the deposit is put together and built - because it is for new builds - it is impossible to argue that there has been an increase in price on a new build. The increases have happened for other reasons and go across the second-hand market. They relate to what everybody knows here - a general lack of supply being driven by demand.

I read the comments of the Governor of the Central Bank to the committee this morning on one of the websites. Without picking an argument with the Deputy, he is not quoting the Governor in full.

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