Mortgage subsidies for first-time buyers
Treacy asked to extend mortgage subsidies to all first-time buyers. Kavanagh said broader coverage for second-hand purchases would be costly and could weaken demand for new homes; Reynolds disputed that this would build the construction industry.
asked the Minister for the Environment if he will extend mortgage subsidies to cover all first-time house buyers.
Comment on this
The mortgage subsidy scheme already applied to some persons who purchase second-hand houses. Apart from the cost of implecations, which would be substantial, any further extension of the scheme which would allow the payment of subsidy to all first-time house buyers who purchase second-hand houses could effect demand for new houses to ditriment of the construction industry. In addition, since the increase in population and the resultant increase in household formation have been the dominant feature of our housing situation for some years past, it is appropriate that we should channel the financial assistance available as far as practicable towards the encouragement of new construction. I do not propose to extend the present scheme in the circumstances.
