Tuesday, 13 October 2020
Department of Finance
110. To ask the Minister for Finance if his attention has been drawn to price increases on new developments being imposed on first-time buyers availing of the help-to-buy scheme; and if he will make a statement on the matter. [30158/20]
With regard to actual housing completions this year, I am conscious that there is likely to be a significant shortfall in 2020 as compared with the targets which were envisaged in the Rebuilding Ireland Action Plan for Housing and Homelessness. It is important therefore that we continue to focus on the delivery of additional housing supply.
The enhancement to the Help-to-Buy (HTB) Scheme introduced as part of the July Stimulus Package aims to help us support construction activity and to get us back on track.
In relation to the potential for house price increases arising from the existence of HTB or the July changes, previous studies carried out by Indecon Economic consultants found that the main driver of house prices was the mismatch between supply and demand rather than the existence of the scheme. While our aim is to move on from this position as quickly as possible, there is still further progress to be made.