Government housing policy will 'push up prices', Sinn Féin claims

Sinn Féin claims the government's housing policy was 'drafted by the construction industry' and will drive up prices. The Taoiseach has rejected this suggestion. Picture: PA

The Government have been accused of allowing "wealthy property developers and big landlords" to direct housing policy.

The Taoiseach has come under fire in the Dáil over a proposed affordable housing scheme which, it has been suggested, will simply push up prices.

Sinn Féin president Mary Lou McDonald said the shared equity loan scheme is "almost identical" to proposals put forward by Property Industry Ireland and Irish Institutional Property which, she said, represent 14 of the "biggest players" in the sector.

The plan, which Housing Minister Darragh O'Brien brought to Cabinet before Christmas, offers equity loans of up to 30% on new-build homes under €400,000.

Ms McDonald said this policy was "drafted for the Government by the construction industry".

She told the Dáil: "Shared equity loan schemes push up prices. Everyone knows that. Even officials in the Departments of the Taoiseach, and Public Expenditure and Reform have advised the Government of this fact.

Housing policy being directed by wealthy property developers and big landlords is what we have while ordinary people continue to live out the nightmare that is this housing crisis.

She pressed the Taoiseach on why the Government are allowing lobbyists for the property industry to write housing policy.

However, Micheál Martin told the Dáil that the Government is "not allowing anybody to write our housing policies" and instead is taking a multi-strand approach to the issue.

"The objective is try to give young people a chance to buy a home and enhance the affordability for them to buy a home. 

It is extremely difficult for them under present circumstances and we are conscious of that. 

He hit out at Sinn Féin claiming the party is against the concept of home ownership in general.

Mr Martin said a balanced approach to solve the housing and homelessness crisis is required.

He said the Government is directing resources into reducing the number of people in emergency accommodation, building more social housing, and developing a strong affordable home dimension "so younger people and working people will be in a position to own a home in the particular locality in which they reside".