The Government has been accused of ‘ignoring’ Ireland’s renters and not properly addressing the property sector, which has suffered from increased prices and soaring rents in the imminent budget.
Finance minister Michael Noonan is expected to announce a ‘help-to-build’ scheme later today that will see first time buyers receive a tax rebate or a grant of up to €20,000.
However, speaking on Newstalk Breakfast this morning DIT housing lecturer Lorcan Sirr said the incentive will only inflate the price builders charge.
“All these things do is get added to the price of the house that is for sale. Builders are out there to make a profit and its understandable that if they see people coming in with more month they’re going to charge more money for the houses.
“All it has done is risen the prices of houses. Crucially it hasn’t led to any increase in housing supply,” he said.
Mr Sirr also said the main problems facing the market at the moment is both people sitting on land and the cost of construction. The DIT lecturer said more people would have benefited from a drop in the cost of construction rather than then tipped grant.
He also expressed his shock at the lack of help for the country’s renters.
“It looks like renters are going to be ignored in the budget, which is quite shocking considering there’s about 720,000 renters in the country.
The problem is when you’re renting and trying to save and suddenly your rent jumps by €300. The real thing to introduce would be some form of rent certainty. What kills people that are saving for a deposit is one month your rent is a €1,000, the next it’s €1,500,” he said.
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