Question to the Minister for Finance:
To ask the Minister the supports available to assist first time buyers in purchasing a home and in view of the increased presence of cash buyers in the market, often making it more difficult for first time buyers to purchase a home, if he will consider new supports to assist first time buyers; and if he will make a statement on the matter. – Jerry Buttimer
For WRITTEN answer on Thursday, 21st March, 2013
Ref. No. 14542/13
REPLY
Minister for Finance ( Mr Noonan) :
The IBF/PWC Mortgage Market profile shows new mortgage lending in Q4 2012 at close to €1 billion and that first time buyers are approximately 60% of this lending, by value and volume. By definition, the mortgage market profile does not include cash buyers but the proportion of mortgages going to first time buyers has increased significantly since 2008.
The Deputy may also be aware that first time buyers who purchase a residential property between 1 January and 31 December 2013 are exempt from local property tax until the end of 2016. There is also an exemption from local property tax up to the end of 2016 where a new or previously unoccupied home is purchased from a builder or developer between 1 January 2013 and 31 October 2016. These measures should provide assistance to first time buyers following the ending of mortgage interest relief from income tax.
Given the current fragile state of the public finances, I am not in position to introduce new supports for first time buyers.