Poll: Should the government bring in a 'help-to-buy' scheme for first home buyers?
House prices, particularly in Dublin, are out of reach for many would-be purchasers.
IN WHAT COULD be viewed as a major kite-flying exercise from the still-new government, both the Irish Independent and the Irish Times carried front-page stories today about plans for a state-backed ‘help-to-buy scheme’.
The mooted measures would be an attempt to help first-time home buyers clear the hurdle of the Central Bank’s lending rules, which limit how much borrowers can take out in loans based on their deposits and incomes.
The scheme could include a ‘top up’ of purchasers’ existing savings to help them meet the cost of purchasing, particularly in Dublin – where the average asking price for a home stands at more than €300,000.
First-time buyers need a deposit of at least €38,000 to afford properties at that price, however saving has been made all the more difficult with sky-high rents in the capital and other major cities.
It is expected that tax relief will also feature as part of the mooted scheme, potentially in the form of an up-front tax repayment, according to the Independent.
However critics of the plan argue it will only drive up demand and therefore further fuel price rises without addressing the underlying problem – that not enough homes are being built.
Karl Deeter, from Irish Mortgage Brokers, today said the grants could also flow to first-time buyers in more affordable parts of the country where incentives aren’t needed.
With all that in mind, we’re asking readers: Should the government bring in a ‘help-to-buy’ scheme for first home buyers?
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