FF and FG phoney row on stamp duty distracts from housing failure
FF and FG phoney row on stamp duty distracts from housing failure - The Labour Party
- Stamp duty cut risks being swallowed up by higher house prices
Labour housing spokesperson Conor Sheehan TD has accused Fianna Fáil and Fine Gael of engaging in a “phoney war” over stamp duty to distract from their failure to deliver enough affordable homes. Deputy Sheehan said cutting stamp duty for buyers in a supply-starved market risks feeding directly into higher house prices and called on Government to focus instead on measures that increase supply and make better use of existing homes.
Deputy Sheehan said:
“Fianna Fáil and Fine Gael can argue among themselves about stamp duty all they like, but it will not disguise the central problem in Irish housing: there simply are not enough homes available at prices ordinary workers can afford. Fianna Fáil in particular should know where policies that inflate property prices can lead. Have they learned nothing from the last property crash?
“Cutting stamp duty might sound attractive, but when you pump more purchasing power into a market where supply cannot meet demand, risks being swallowed up in higher prices.
“We have already seen this approach with Help to Buy and the First Home Scheme. Instead of tackling the fundamental problem of supply, Government keeps reaching for subsidies that ultimately support higher prices and hand more money to developers.
“Labour has consistently argued that the State needs to build. We need at least 50,000 homes a year, including a major expansion of social, affordable purchase and cost-rental housing. That means direct public investment, tackling vacancy and dereliction, and establishing a State Construction Company. It does not mean another demand-side giveaway.
“There are targeted ways in which stamp duty could help the housing market. Government should examine proposals to support older homeowners who want to right-size from larger family homes but face significant financial and practical barriers to doing so.
“That is the kind of targeted intervention Government should explore. Instead of another phoney political row and another subsidy that risks disappearing into house prices, Fianna Fáil and Fine Gael need to confront the real problem. Ireland needs more homes, greater affordability and a State willing to build. Government must stop trying to throw cash like confetti as a way out of the supply crisis and start delivering the homes people need.”