Double blow for first-time housebuyers

FIRST-TIME housebuyers have been hit by a double whammy in the Budget which could further price them out of the property market.

While the cost of borrowing is set to come down after the European Central Bank reduced interest rates yesterday, opposition parties claimed Budget day VAT increases will add €2,000 to the cost of a home.

On top of this, measures by Environment Minister Martin Cullen to increase social and affordable housing may add a similar sum to the cost of a new home.