Call for mortgage interest relief to be extended

With time running out for the property market’s first-time buyers to benefit from tax reliefs, the Government is being urged to aid buyers — and the market — by extending mortgage interest relief for a further 12-month period.

Mortgage interest relief worth as much as €20,000 to new buyers is due to be abolished from Dec 31.

However, the deadline is effectively closer, with applications for interest relief required to be in by Oct 31, according to property website MyHome.ie.

The company says “we don’t think prospective buyers are aware of this effective deadline. Even if Government doesn’t extend the deadline, maybe they could change the system to say it covers those who get their applications in by Dec 31 — it would be a great help to prospective home buyers.”

A MyHome survey shows 63% of first-time buyers intend to buy in the next 12 months, amounting to an increase of 13% from February, while 27% intend to buy by year’s end.

Three-quarters of first-time buyers have a deposit, yet 60% believe financial institutions are not lending at present.

MyHome managing director Angela Keegan said: “We are seeing more transactions now and that is a positive as the market starts to recover. However, we don’t want to see a situation where people feel rushed into buying a property. 88% of respondents to this survey believe the mortgage interest relief measure should be extended and we would support that call.”