MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • First-time buyer grant could be axed if it inflates the market
Uncategorized
Nov 28, 2016 - 11:36

First-time buyer grant could be axed if it inflates the market

MyHome.ie
By MyHome.ie
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
First-time buyer grant could be axed if it inflates the market

The Government's €20,000 grant for first-time buyers will be axed if it is found to be inflating the property market, according to reports.

In the wake of the Central Bank’s review of its mortgage policies, the Government and Fianna Fáil have expressed concern that the combination of the help-to-buy scheme and the more relaxed lending rates could overheat the market. Fianna Fáil finance spokesman Michael McGrath has said the party will force the termination of the scheme if they deem house prices are spiralling out of control.

“If we are presented with evidence from an independent impact assessment that the Government intervention is pushing up prices, we can’t stand by. If it is definitely resulting in increased house prices, it will have to come to an end,” said Mr McGrath.

Last week, the Central Bank decided to relax its lending rules, which now mean first-time buyers can now borrow 90% of the value of a home.

Finance Minister Michael Noonan welcomed the change in the Central Bank policy, saying it “should enable all of those borrowing to purchase a home to find it easier to source a mortgage that suits their needs”. In particular, he welcomed the abolition of the €220,000 loan-to-value threshold limit for first-time buyers.

Advertisement

However, behind the scenes there is an awareness within the Government of the potential of the already supply-shy house market overheating, and last night a senior source said a “close eye” was being kept on matters.

Industry insiders have warned the combination of the two measures will force price growth of up to 10%, particularly in the greater Dublin area and surrounding commuter counties.

Keith Lowe, chief executive of estate agents DNG, said: “I believe this change will now lead to sharper price rises at the lower end of the market and in the new home sector.”

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • Central Bank
  • DNG
  • Fianna Fáil
  • Finance Minister
  • first-time buyer
  • Help-to-buy scheme
  • Keith Lowe
  • Michael Noonan
MyHome.ie
By MyHome.ie
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement