Mick Barry (Cork North Central, Solidarity) | Oireachtas source

This shared equity scheme is good news for builders, developers, banks and land hoarders and is bad news for people who need affordable homes. Pumping up the demand when the supply stays more or less the same is a recipe for higher house prices. A similar scheme was introduced in England and Wales in 2013. The house price inflation for new houses, over the second-hand ones that were excluded from the scheme, was 3% per annum. The London School of Economics looked at the situation in London and said the scheme led to a 6% increase in house prices. The ESRI, the establishment's own semi-official think tank, came before the housing committee in the middle of February and said this scheme was likely to increase the price of housing. That is leaving aside the issue of negative equity. The State would be taking a share of up to 30% in stock which may well be devalued in the recession that will follow in the next few years, so potentially high levels of negative equity will be taken on by the State as well. It is good news for the builders and developers and bad news for the ordinary punters.

Deputies Hourigan and Costello have voiced concerns about this scheme. They have stated a preference for direct investment by the State in social and affordable housing. Will they vote for the motion or against the motion? Will they vote for the scheme or against the scheme? A time comes when Deputies must stop voting for legislation they do not believe in. There is a split here between the interests of the wealthy developers and the ordinary house buyers. Green Party Deputies, and those Deputies in particular, need to decide which side they are on.

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