Saturday 10 December 2016

Government's plan for affordable housing is designed to fail

Published 26/07/2016 | 02:30

Minister Simon Coveney talks about the Government's new housing plan Photo: Gareth Chaney Collins
Minister Simon Coveney talks about the Government's new housing plan Photo: Gareth Chaney Collins

Experts are warning the Government that helping first-time buyers will increase house prices. As part of the Government's plan to solve the homelessness and housing problem, it will make €10,000 available to first-time buyers.

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But it's not a lack of money that prevents people from buying a house, it's the disproportionate price of houses relative to their salary. Let me ask you, what happens to the price of a good when more money becomes available for its purchase? Your 12-year-old self is shouting the answer: "It goes up!"

But that's what the Government wants, to offset the fall that house prices will experience once the Government starts its building programme.

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