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Dáil
‹ Questions on Promised Legislation

Help to buy scheme

Summary

Deputy McDonald attacked the help to buy scheme as flawed and likely to inflate house prices. The Minister defended it as helping first-time buyers and encouraging more supply, and challenged Sinn Féin to seek expert advice on its own tax policies.

I ask about the help to buy scheme, which is part of the finance Bill to be published today. The scheme, which will provide a rebate of income tax over the four previous years up to 5% of the purchase price of new build homes, is a deeply flawed and dangerous scheme. Before the Government pressed ahead with the launch of this scheme last week, the overwhelming majority of expert opinion told them it would not work and would make the housing situation worse. The reports on its impact on property prices since then confirm that and bear out that expert view. The asking price for new build homes is reported to have significantly increased in various parts of the State, effectively wiping out any potential benefit for the help to buy scheme. The reported changes to the scheme on foot of the Central Bank concerns do not make the scheme any more workable. Fianna Fáil's proposal to include second homes goes against the thrust of the scheme, which we were told was to drive up the supply of affordable first-time homes. This was a very bad proposal to begin with. It will not help first-time buyers. It will not increase the availability of new build homes, and it will add to the crisis in housing for which this Government is responsible. Will the Government do the sensible thing, even at this stage, and scrap this scheme?

Comment on this

I am delighted to hear that Deputy McDonald is interested in expert opinions and I hope she will seek an expert opinion on her own party's tax policies. She might ask the experts about the impact on our health service and our financial services of a major hike in income taxes on consultants and IT specialists-----

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The Minister has not read the document.

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-----or, similarly, on the prospects of multinational investment in Ireland. I challenge her to seek an expert opinion on that and perhaps to publish it.

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It is there in black and white.

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On the question the Deputy asked, the purpose of the help to buy programme is twofold: first, to help first-time buyers and to give them an edge over others who are seeking to buy homes, particularly investors who are looking to rent properties - even if prices rise, this still gives them an edge; and, second, but importantly, to incentivise builders to increase supply to build more homes, and particularly homes that are affordable for first-time buyers that cost €400,000 or less. The details are in the finance Bill, which will be published today, and I hope Sinn Féin will reconsider its position, support it and show that it supports first-time buyers.

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