First-time buyers’ grant could be axed

Finance Minister Michael Noonan’s €20,000 grant for first-time buyers will be axed if it is found to be inflating the property market, it emerged yesterday.

In the wake of the Central Bank’s review of its mortgage policies, the Government and Fianna Fáil have expressed concern that the combination of the help-to-buy scheme and the more relaxed lending rates could overheat the market. Fianna Fáil finance spokesman Michael McGrath has said the party will force the termination of the scheme if they deem house prices are spiralling out of control.

“If we are presented with evidence from an independent impact assessment that the Government intervention is pushing up prices, we can’t stand by. If it is definitely resulting in increased house prices, it will have to come to an end,” said Mr McGrath.