Written answers

Tuesday, 11 July 2017

Department of Finance

Help-To-Buy Scheme

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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146. To ask the Minister for Finance the estimated impact on the 2018 fiscal space of abolishing the help to buy scheme. [32543/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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At the time of Budget 2017, it was estimated that the Help-to-Buy incentive cost €50 million in 2017 and €40 million in a full year. Therefore, it would be expected that approximately €40 million in fiscal space per annum will accrue when the scheme ends.

My predecessor agreed to commission an independent impact assessment on the effects of the Help to Buy incentive for completion prior to Budget 2018. Following a competitive tender process, Indecon Economic Consultants were appointed in April to undertake this assessment.

This purpose of the project, in general, is to assess whether the policy objectives on the supply of new homes are being met, what impact (if any) the scheme is having on new and second-hand house prices, and what impact the scheme is having on the residential property market generally.

Once received from Indecon, the contents and findings of the report will be considered and I will decide on any appropriate action(s) to take in relation to its findings, in the context of my deliberations as part of the annual budgetary process.

Finally, I would like to reassure members of the public who may be in the process of applying for the Help to Buy incentive, or those who currently have applications pending, that speculation concerning its abolition will not impact negatively on their applications. I would propose to signal well in advance, any proposed changes to the incentive following my consideration of the Indecon report.

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