Cheap credit without increased supply will result in less affordable housing in Dublin – McAuliffe

Published on: 22 January 2018

Fianna Fáil General Election Candidate in Dublin North West, Cllr Paul McAuliffe has said that the Government’s revised Affordable Mortgage Scheme, which was announced earlier today, will prove ineffective without an increase in affordable housing supply.

Commenting this afternoon, Cllr McAuliffe said, “Dublin is often viewed as a hub for opportunity. It is of no surprise then that so many young people and couples are drawn to live in Ireland’s Capital.

“One of the main triggers of the last housing bubble was the unlimited availability of credit above and beyond the level of supply which was required to sustain the market.

“I am concerned that today’s scheme has a real possibility of ramping up prices to the maximum €320,000 mortgage limit. This is likely to leave many new, prospective home owners without options, while at the same time further inflating the property market.

“Today’s announcement has little or nothing to do with supplying more housing units.

“A great proportion of the social housing delivered this year has been provided for by empty private homes being bought by the State. This has effectively resulted in the State competing against its own young people desperately seeking to purchase an affordable home.

“In order for each of the four Dublin Local Authorities to deliver mixed income developments, a legislative basis for an affordable housing scheme must be immediately introduced.

“It must be specifically set in legislation so that Local Authorities can support builders and developers to deliver affordable housing across Dublin.

He concluded, “It will take a lot more than a revamped loan scheme to transform our overstretched housing market in the Capital. We need to show more commitment in getting to grips with this conquering this crisis.”

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