With mortgage relief ending, should you buy now?

IN its pre-election manifesto, Fine Gael promised to raise the tax relief to 30% for those who bought at the top of the housing market between 2004 and 2008.

It was to be partly funded by abolishing tax relief for all new buyers from mid-2011. The promise was transposed into the joint Programme for Government as something to be considered rather than definitely implemented. So far, it hasn’t happened, although some change could be announced on budget day.

As it currently stands, tax relief is to be abolished for loans taken out from January 1, 2013 and will be greatly reduced for mortgages taken out during 2012. It’s unlikely that will be changed, although with house prices still falling that may not provide much extra incentive for buying now rather than waiting. But for those who have decided to buy, there is an advantage in doing so now rather than waiting for the new year.