Government tax incentives adding fuel to house price inflation, warns ESRI

'Schemes are adding to demand pressures'

The help to buy scheme and the shared equity scheme are adding to demand pressures, says the ESRI. 

Concerns that Government tax policies are fuelling house price inflation at a time of acute shortages has been spelt out by the Economic and Social Research Institute (ESRI), as it warns price hikes will continue into next year.

Kieran McQuinn, professor at the ESRI, told the Irish Examiner that the existing help to buy scheme available for most home buyers and which has been extended into next year, as well as the shared equity scheme which is due to come into place for first-time buyers next year, are "unfortunately" adding to demand pressures.