Left-wing criticism of the Government’s new affordable housing strategy has been “bordering on hysterical,” according to the Housing Minister.

As part of the new Affordable Housing Bill, the Government will take on a stake of up to 30% in a house where purchasers can’t afford the full mortgage.

The plan will be available to first-time buyer purchasing homes costing up to €400,000; however, there will be different price caps in different areas.

The ESRI has raised concern over the plan, warning that it would “very likely lead to higher house prices,” while the Central Bank warned it could leave mortgage holders with unaffordable debts.

The Sinn Féin housing minister Eoin Ó Broin said it would benefit developers, increasing house prices and the debt burden on homeowners.

On The Pat Kenny Show this morning, Housing Minister Darragh O’Brien said the ESRI was “not as critical as some reported” and rubbished criticism from the opposition.

“Some of the response, politically, from the left and hard left has been bordering on hysterical on this,” he said.

“They have been talking about the issue of house price inflation. This is worth €75m in a mortgage market of €11bn - less than 1% - and they are targeted measures.

“I want people to own their own homes and I want to help them do that. I am determined to do it and that is why this bill, coupled with the Land Development Agency Bill will actually do that.

“Others may want to pontificate and delay and delay, I don’t want to. We can’t afford any more delays in dealing with our housing crisis.”

Sinn Féin housing spokesperson Eoin Ó Broinn speaking on the Dáil plinth, 21-08-2020. Image: Sam Boal/RollingNews

Minister O’Brien said the ESRI’s input has been very useful and said many of the institute’s concerns will be addressed before the legislation returns to the Dáil in the coming weeks.

“I am still on track to have this affordable bill, which will make a big difference for people and a big difference for those who have lost all hope of being able to own their own home, in place before the summer,” he said.

He admitted that the biggest issue facing the country is the supply of new homes; however, he insisted that the new Land Development Agency will “bring State land into productive use.”

“There is so much State land out there that is sitting idle that could be used for housing,” he said.

“The State will have a big role in driving supply through the land development agency and through the affordable housing bill.”

Sunshine behind construction cranes at a building site. Picture by: Matthias Balk/dpa

He said the Government’s strategy will address both affordability and supply.

“There are people out there at the moment paying rents of up to €2,000 per month and if they could get a mortgage, they would only be paying a mortgage of €1,000 or €1,100 per month and many of those people want the opportunity to buy their own home,” he said.

“That is why these targeted measures are needed.

“The status quo continuing and trundling along is not going to do it. We are in the middle of a housing crisis; the State does need to get involved and these measures are very much supply-side measures that will help to boost supply.”

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