Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government's construction strategy includes a desire for a return to sustainable levels of mortgage lending as part of a healthy market. This involves the consideration of measures to stimulate the development of housing. In Ireland's housing market, over the last few years, lending volumes have declined dramatically. More recently, commentators have been highlighting the lack of supply of houses, in certain urban areas, as a contributing factor for the lack of drawdown of approved mortgage facilities.  The Government is prepared to consider initiatives that would aid  and facilitate the supply of new homes, in particular for young families. 

In other jurisdictions, such as the UK and Canada, "mortgage insurance" markets have been developed to support bank mortgage lending, particularly to 'First Time Buyers'. Mortgage insurance allows banks to share the risk of mortgage lending, either with public sector or with private sector insurance companies with the aim of increasing bank lending in general or to target groups.

My Department is committed, under the Construction 2020 strategy, to examine the concept of a mortgage insurance scheme and how it might benefit new housing completions in the Irish market. The objective of any scheme would be to ensure adequate availability of mortgage finance on affordable terms for new completions, particularly for 'First Time Buyers', as the economy recovers. Of particular interest is the means by which such schemes can support greater levels of investment in new housing, with the associated benefits for the construction sector and ultimately for the consumer.