A new affordable housing scheme from the Government will not result in more people owning their own homes, but instead will push up prices and see “a return to failed housing policies of the Celtic Tiger era”.
This is the view of Galway West TD, Mairéad Farrell [pictured below], as her party, Sinn Féin, adds its voice to the growing chorus of criticism of the Government’s €75 million Shared Equity Loan scheme.
The Government believes the State taking up to 30% equity in a home with a first-time buyer will help people get on the property ladder. However, it is understood that civil servants warned the Government that the plan would not see beneficial results for those looking to buy.
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Furthermore, the plan has been criticised by the Central Bank, the Economic and Social Research Institute, the Institute of Professional Auctioneers and Valuers, and a number of Fine Gael councillors.
The main criticism of the scheme is that, if developers know such a scheme is in train, they will make houses more expensive to purchase, due to the State's involvement.
During private members time in the Dáíl yesterday, Sinn Féin called on the Government to scrap the scheme, and instead use the funding to deliver genuine affordable homes to rent and to buy.
'By property developers for property developers'
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“The scheme was written by property developers for property developers and closely mirrors a similar scheme in place in Britain,” she said. “Evidence available on the British version of the scheme shows it pushes up house prices and delivers homes where they are not needed.”
She said the Government’s plan will “saddle working people with too much debt”, and added: “We cannot return to the same old Fianna Fáil developer led policies of the past. People deserve better.”
