Scrapping home equity loan program, says SF TD
The government’s shared home loan program is “dead like a dodo” and should be terminated immediately, said Sinn Féin TD Eoin Broin.
The party will table a motion in Dáil on Wednesday calling on the government to abandon plans for the new affordable shared share purchase program amid claims it will lead to house price inflation.
Meanwhile, the Oireachtas Housing Committee has agreed to invite the Central Bank to testify as part of the planned review of the project.
Under this program, which is part of the new affordable housing bill, a first-time buyer of a new home can ask the state to take up to 30% of the equity in the property. A budget of 75 million euros has been allocated for the first year of operation.
Defending the initiative, Housing Minister Darragh O’Brien said: “We are in the midst of a housing crisis that demands a swift and effective response using a range of options and not the fantasies of the opposition. The shared equity agenda is only one measure of the comprehensive affordable housing bill 2020.
“The shared action program will be targeted, time and funding limited, and subject to regional price caps to immediately activate supply, stop inflation and ensure achievable demand.”
However, Mr Ó Broin said: “It is now becoming increasingly clear that this program is dead like a dodo in terms of expert opinion and it is time for the Minister to catch up and abandon this Fianna development program. Easy and put that money where it is. needed to deliver truly affordable housing.
He also urged the Green Party to vote in favor of the Sinn Féin motion in next week’s vote.
Green Party TDs Neasa Hourigan and Patrick Costello have expressed concerns about the program and said the money should be spent on social and public housing.
“If they are against the scheme, we give them the opportunity to demonstrate that they are against the scheme and I think they should vote for the motion. I think there comes a time when you can no longer criticize things and facilitate them, ”said Mr Ó Broin.
The chairman of the parliamentary party Fine Gael, Richard Bruton, called “false” the opposition’s claims that the project will lead to a price spiral.
“This is a very targeted scheme, focused on people whose income exceeds the limit of € 42,000 for social housing, but who cannot buy on the loan rule 3.5 times the income. This group should be a priority group for assistance.
“It’s not like the mortgage relief schemes that have increased demand universally, nor for that matter like the rental tax relief favored by Sinn Féin.
“It is of course true that if families excluded from the market are allowed in, you increase the demand for new homes. However, by helping this priority group, you are reducing the demand for rental properties, therefore not increasing the overall pressure in the market, ”Mr. Bruton said.