Government home loan scheme will raise prices in short term, says Central Bank

The report says that house prices will be affected by ongoing inflation in the cost of construction as well as the implementation of Government policy. File photo

The Government's shared equity home loan has the potential to push up house prices in the short term, a report from the Central Bank says.

The bank's Financial Stability Review 2021 says that the scheme, which was part of the Housing For All plan announced in September, will shift the demand for homes but do little to bring down prices in the short term.