Dáil Éireann Debate, Thursday - 19 January 2017
76. Deputy Stephen S. Donnelly asked the Minister for Finance if his Department has reviewed the impact of the introduction of the first-time buyer's grant; if so, the findings on the impact on sales; and if he will make a statement on the matter. [2402/17]
Amharc ar fhreagraI assume the Deputy is referring to the 'Help to Buy' incentive which was initially announced on 19 July 2016 as part of 'Rebuilding Ireland: Action Plan for Housing and Homelessness' and provided for in the recent Budget and Finance Act. The Action Plan contains a significant volume of responses to the current housing crisis, of which the Help to Buy incentive is one. This comprehensive Action Plan takes a holistic approach in addressing the many interacting structural constraints affecting the housing market in areas such as planning and land use, as well as regulation and skills deficits in the construction sector. While the primary focus of the Action Plan is to tackle structural constraints, fiscal supports can play a supporting and time-bound role in addressing the current problems in the housing sector. It is in this context that the Help-to-Buy scheme should be considered.
I wish to assure the Deputy that my Department continues to monitor developments in the property market, including property prices, on an ongoing basis. The Deputy will also be aware that I have committed to commissioning an independent economic impact assessment of the Help to Buy incentive. It will focus specifically on the workings of the incentive and its impact on the housing market generally, including any potential impact on property prices. This findings of this assessment will be available later in the year, following the completion of the required public procurement processes, awarding of the contract and completion of the relevant analysis.
I would point out that the relevant online application facilities were launched by the Revenue Commissioners on the 3rd of January 2017 and as such, the incentive has only been operational for just over two weeks. In this regard, it would be very early to consider the measurement of the impact (if any) of the incentive.
