Developer-led Shared Equity Scheme will increase house prices
Labour housing spokesperson Rebecca Moynihan has expressed concern at the Shared Equity Scheme announced by government today. Calling it a boon for developers, Senator Moynihan said international experience shows that schemes such as this have the impact of inflating house prices, locking more people out of home ownership.
Senator Moynihan said:
“The Shared Equity Scheme announced today is a boon for developers. Unfortunately, the experience of shared equity schemes in the UK shows that the scheme as announced by government today will have the effect of inflating house prices.
“A similar scheme in London resulted in inflation of almost 6% which is the last thing that the housing market in Ireland needs right now. It’s a for profit, demand side measure that will increase house prices and make housing even more unaffordable for people.
“With house prices continuing to rise and the majority of young people entirely locked out of the aspiration of home ownership, the Shared Equity Scheme will only continue to add to the crisis. The government’s commitment to pursuing this measure flies in the face of basic economics.
“Just like with Croí Cónaithe, this is a demand side measure that will not fix the supply issue at the heart of the crisis. With our population now over 5 million, there is a serious question mark over government’s housing strategy.
“We need to scale up cost rental and social housing plans, and if they were serious about tackling housing, this €400 million would have been invested into these endeavours.
“The Shared Equity Scheme is essentially a transfer of state money to developers, rather than focusing on providing state led affordable housing and affordable rental. The scheme will drive up prices for people trying to buy a house while padding the pockets of developers.”