Mick Barry (Cork North Central, Solidarity)
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31. To ask the Minister for Housing, Planning, and Local Government if he will review the planned affordable housing scheme in view of the impact of the scheme on increasing house prices; and if he will make a statement on the matter. [23275/21]

Mick Barry (Cork North Central, Solidarity)
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Where the Minister left off is precisely where I want to begin, that is, the affordable housing scheme, particularly the shared equity element within it. The Minister says it will bring down housing prices, but it is not just his critics on the left, as many establishment politicians as well as establishment economists have spoken about the potential for this to increase prices. I would like the Minister to comment on the issue.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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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.

Mick Barry (Cork North Central, Solidarity)
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Could the Minister comment on the breaking news of the statement by Deputy Lahart that Fianna Fáil is drowning in the shadow of Fine Gael's housing policy? I presume the Deputy is referring to the sweeteners to the vulture funds in respect of corporation tax, capital gains tax, rent roll, stamp duty and so on, all of which Fianna Fáil allowed it to make because it was propping up the previous Government. A former Minister for Finance, Michael Noonan, famously said he wanted to facilitate the attraction of foreign investment capital to the Irish property market, recovering profitability for the banks and their balance sheets at the expense of affordable homes and ordinary people who want to buy homes, including first homes, in this country.

We have heard all day from the Taoiseach and the Tánaiste that the Government is going to do something about this, but the question is when. The Minister had a round of discussions with the Minister for Finance, Deputy Donohoe, this afternoon. Could he tell the House when we will see action on this issue?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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A number of questions have been asked and a number of charges have been made. I believe in home ownership. Some others do not and that is fine. I believe it is an honest and just aspiration for people to have, and one that the State should support. I am not sure what Deputy Barry has against young people or potential first-time buyers and why he would not want to help them to own their own homes at an affordable rate or for them to be able to rent homes on a secure long-term basis through the new State-backed cost-rental scheme at a lower rate. I am sure that we all want that.

The bulk sale of properties is a legacy issue. It is one which we intend to help to tackle. I do not like seeing funds buying up family homes. I have been very critical of that in the past and I remain critical of it. I want to play my part in providing a solution to it. The market is already constrained. First-time buyers cannot compete with these type of funds. It is as simple as that. The Taoiseach was very clear on the matter, as was the Tánaiste, earlier today.

Mick Barry (Cork North Central, Solidarity)
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Let us be clear about who has prevented young people buying their first homes: it is not Solidarity or the Socialist Party that have been in government while young people have been locked out of the market and developers have made a fabulous profit. Let us talk about house prices. Capping affordable housing for the equity scheme at €400,000 in the city of Cork is just unreal. What planet are the Ministers on with these kind of figures? I want to ask the Minister about a statement he gave to the Irish Examineryesterday in which he said price capping will not lead to developers driving up prices. What research did he do to back up that statement? The only example he gave me from London is one where prices went up.

The Minister's claim is that they did not go up as much as others have claimed. He said it will not lead to developers driving up prices. What scientific research has he done in this country to back up this statement?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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It is hard to know where it begins and ends with Deputy Barry. I will say it again. There was 1% house price inflation over that period. There has been house price inflation. That is what we are talking about. This scheme is focused on those who need it most.

I heard Deputy Barry and Deputy Boyd Barrett, in particular, talk about price caps. They are caps, not targets. In every area in the Deputy's adopted city of Cork there will be different prices for different homes. We are making sure with a cap that no one can enter the shared equity scheme if the price of the home is over that amount. It will not drive prices up to that level. It depends on the type of house.

The scheme is a supply side scheme and will help. It is one of a number of measures in the affordable housing Bill, some of which I hope the Deputy will support, such as the delivery of direct build affordable homes on State-owned land through our local authorities. There is a €310 million fund. We are making changes. The first homes will be delivered in Boherboy in Cork and we intend to deliver up to 6,000 homes under that scheme. We have to establish it on a primary legislative footing at a national level. I expect the Deputy to support it.