The shared equity scheme will throw further fuel on the fire of an overheated market
The Central Bank’s warning that the Shared Equity Scheme will push up house prices is a shot across the government’s bow, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“The Central Bank report today was crystal clear. It said that, given the supply crisis in the housing market, the shared-equity scheme “has the potential to increase pricing pressures”.
“This warning is a shot across the government’s bow – and they would be foolish to ignore it. The property market is already red hot, with house prices having grown by more than 12pc in the past year alone. The shared equity scheme will throw further fuel on the fire of an overheated market.
“The Central Bank also note there are other factors, aside from the shared equity scheme, which could lead to property price inflation. It states that higher construction costs are “likely to feed through to house price inflation”. Given this existing risk, why is the government determined to add another inflationary pressure into the mix?
“The Central Bank is not the first expert body to have raised serious concerns about the shared equity scheme. Previously, the ESRI, the Housing Agency and even officials in the Department of Finance and the Housing Department have all issued similar warnings.
“The question now is, why is the government determined to ignore the expert advice and plough ahead, regardless? Young people and workers are already locked out of the housing market because of an affordability crisis. We need to make housing more affordable – not more expensive.”
“The shared equity scheme will only exacerbate an already dire situation.”
25 November, 2021
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