Government scheme for first-time buyers 'could end up as subsidy for builders'

The head of the Central Bank has criticised the Government's scheme for first-time buyers - saying it could end up serving only as a subsidy for builders.

Governor Philip Lane warned that "if there is an insufficient supply response, raising demand in a given segment of the housing market will just tend to put upwards pressure on prices, with sellers of the properties gaining more than the recipients of the subsidy."