Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I thank Deputy Barry for the question. The fundamental point is that if we keep doing the same things, we will get the same results. We need new initiatives. We need to help first-time buyers and the members of "generation rent" who are stuck paying exorbitant rents. We are going to introduce our new cost-rental scheme, the first national scheme of its kind ever. The affordable purchase shared-equity scheme is being designed specifically to help first-time buyers to buy new homes at a price they can afford much sooner than would otherwise have been the case without this intervention. There is nothing wrong with that. In so doing, it will build confidence within the sector and increase housing supply also. This is a supply-side measure. Extensive engagement has been undertaken with key stakeholders to ensure the optimum design of the scheme and significant feedback has been factored in. I welcome the feedback. I am confident that the final design of the scheme can mitigate against any potential inflationary risks. It is not a debt-driven scheme, it is an equity stake that the State will be taking.

I closely analysed a similar scheme in the UK, where, in 2019, a review by the National Audit Office, the equivalent of the Office of the Comptroller and Auditor General, concluded that it had increased housing supply by 14.5% and house price inflation was less than 1%. Our scheme will be calibrated and targeted in a much more focused way. I intend to employ more targeted measures than those relating to the British scheme. The scheme be specific to new builds and will establish conditionality linked to maximum allowable home price by local authority area and maximum levels of equity support that will be available. Support provided will be limited to bridging the gap between the maximum mortgage available to the household and the open market price of the home. I will review the scheme after a year to ensure it is doing what it is intended to do. I am very confident about this measure. It will work. It provides hope for that whole generation of people who have been locked out of owning their own home and at an affordable rate. I hope Deputy Barry will see his way to supporting the scheme.

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