Labour pledges to part-fund mortgages

LABOUR has promised to part-fund mortgages for families struggling to get on the housing ladder.

Party leader Pat Rabbitte made the pledge last night as one of five “commitments to change” that Labour says it will meet if returned to power after the general election.

“Sky-high house prices and increasing mortgage rates are putting home ownership beyond the reach of young people,” he said.

“The social housing lists are impossibly long. Getting an affordable home is about as likely as winning the lotto.”

To address the situation, Mr Rabbitte said he would initiate a scheme called “Begin to Buy” if voted into government.

Under the scheme, Labour would assess the housing needs of individuals or families looking to get on the housing ladder.

“Where they cannot afford the full cost, the State will take out a mortgage on the balance,” Mr Rabbitte explained. “When families are ready to purchase additional equity, they may do so.”

In this way, the State would not be paying to build homes directly, but investing in property “in a way that facilitates families”.

While the State would incur an interest cost, a family would be housed, and the pressure on the social housing sector would be eased, he said.

If a family subsequently wished to move house, the original property would be sold and the proceeds split in proportion to the original shares between the family and the State.

Mr Rabbitte also pledged that Labour in government would provide “more beds in clean hospitals”.

The housing and hospital pledges were the fourth and fifth in the series of commitments. Labour has already promised to provide more community gardaí, a year’s free pre-schooling for every child, and to abolish the means test for carers.

Mr Rabbitte was speaking on the eve of Labour’s conference at the Helix in Dublin City University today. The North’s police ombudsman, Nuala O’Loan, is among those who will address the one-day conference.

The conference is the first of the political season. The PDs, Greens, Fine Gael and Fianna Fáil will all follow suit in the coming weeks.