Land costs making home ownership unaffordable
Figures from the Revenue Commissioners on the 'Help-to-Buy' incentive highlight that the tax relief scheme needs to be adjusted to help those who really require assistance.
The State should not be subsidising first-time buyers who choose to buy an expensive house or apartment, far removed from the typical starter home. It's also clear that many people are well able to secure a mortgage through their existing income or via the bank of mum and dad, with a sizeable number of claimants advising the tax man they had offered a 20pc deposit on a new property.
It's far from clear whether 'Help-to-Buy' is the main reason for rapidly rising prices, especially given the low number of first-time buyers who purchase new homes. The lack of supply and pent-up demand is the problem, but construction costs are also playing a role.