A developer says there would be 'no justification' for any increase to house prices due to the expanded Help-to-Buy scheme.
Michael O’Flynn, developer with O’Flynn Group, has insisted the initiative is one to benefit house buyers rather than developers.
The Government extended the scheme as part of the July Stimulus Package announced earlier this month.
First time buyers can now claim up to 10% or €30,000 back on the cost of a new home, up from the 5% or €20,000 that was previously available.
However, Sinn Féin has claimed it has already seen house prices increase - with Sinn Féin's housing spokesperson Eoin Ó Broin saying that some property prices jumped €10,000 overnight.
Speaking on The Hard Shoulder, Mr O'Flynn said he hasn't seen any such increases - and that he doesn't expect there will be any either.
He observed: "This is an initiative by the Government - a very welcome one - on the buyers side. It's not put there for the developer: I see no justification, and hopefully no case will arise where people are going to see it as opportunistic.
"This is to help first-time buyers get on the housing ladder.
"The Help-to-Buy has already been successful, and I think expanding it will help a lot of people get on the housing ladder."
Mr O'Flynn said he was surprised at the scheme's extension - suggesting that while he expected something to happen, he didn't expect it to come out as part of the stimulus package.
However, he stressed the scheme is something that's badly needed.
He observed: "We have a serious problem in this country as regards a generation of people of certain salary categories... who cannot afford to buy a house, and who don't actually qualify for social housing.
"This Help-to-Buy scheme was critical in people buying and not buying - and this expansion, from €20,000 to €30,000, will help more people to buy."
'People have to live somewhere'
Mr O'Flynn said a deposit is often people's barrier to buying a house, and this scheme helps address that.
However, the developer said it's not going to solve the housing problem on its own - highlighting issues such as the rules determining how much people can borrow.
He observed: "You also have the overall price issue: I am well on record as saying house prices are too expensive, for a variety of reasons - including the old chestnut of VAT of 13.5%.
"Land has become too expensive, and this is something that has to be looked at. Development levies are too expensive compared to what they used to be as a percentage."
Mr O'Keefe said in the long-term the sector needs to be involved in any efforts to address the housing crisis.
He said: "When we had a big health crisis, the health people got right in the middle of it - we all stood back and admired what they did. The housing crisis... I firmly believe will only be solved... [if they] involve the sector.
"Look at what it would cost the country to provide extra social housing. People have to live somewhere. We have a situation in this country that rents are out of control.
"You can fine tune the mechanisms if you wish, but we should be bringing in structures that allow people get on the housing ladder."
