FG: Ongoing house price decline shows error in Nama plan

FG: Ongoing house price decline shows error in Nama plan
Phil Hogan

Fine Gael today claimed the latest house price index exposed holes in the Government’s Nama proposal.

Average national house prices decreased by 1.5% in August compared to reductions of 1.1% in July and 1.5% in June, according to the latest edition of the permanent tsb/ESRI index.

The party’s environment spokesman, Phil Hogan, said figures revealed the property market was still falling and had not yet hit rock bottom.

“The fears that the Fianna Fáil Government got it all wrong on Nama are already being realised,” said Mr Hogan.

“Despite a large number of property specialists and economists estimating that the property market had further to fall, Brian Cowen and his Government accepted the banks ’good faith’ on the issue of prices.

“They said that the market had bottomed.

“Simply put, the calculations underpinning Nama are wrong. Its calculations relating to market value are clearly at variance to what is happening in the market.”

Mr Hogan maintained Nama’s credibility was in shreds.

“Property prices are nose-diving, interest rates are about to increase and rents are plummeting,” he added.

“It is a vehicle to price development lands at 70% of their value in order to bail out bankers and developers at the expense of the taxpayer.”

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