Government's Help To Buy scheme aided people 'who had large deposits and were able to buy anyway'

The ESRI says Ireland needs 35,000 new homes a year — but fewer than 20,000 are expected to be built this year. Picture: Joe Giddens/PA Wire
The Government’s Help To Buy scheme funded people who already had large deposits and would have been able to buy their homes anyway, TDs will be told tomorrow.
In a submission to be delivered to the Oireachtas housing committee, officials from the Economic and Social Research Institute (ESRI) will say that funding these people when supply is so constrained “will very likely lead to higher house prices”.
A review of the Help To Buy scheme data suggests that many households with large deposits have received support, the ESRI will say.
“It is likely these households were not constrained and would have been able to complete the transaction anyway,” their opening statement, seen by the
, states:
"Such rises in house prices are likely to exacerbate affordability problems down the line,” they will add.
While the ESRI says the country needs 35,000 new homes a year, fewer than 20,000 are expected to be built this year, and Covid-19 is only exacerbating that divide.

The committee will also hear from John O’Connor, chief executive of the State’s Housing Agency, who will say that only 390 homes will be delivered under the new cost rental equity loan (CREL) scheme.
Meanwhile, housing minister Darragh O’Brien is facing a backlash from his own backbenchers over plans to give him powers to set the price of properties.
The recent publication and pending passage of his Land Development Agency Bill is under threat as backbenchers have expressed concern that powers extended to the minister will allow him set the price of land.
They are also vexed at a requirement that the agency will have to pay another state agency “market value” for any land taken over.
At a briefing with 12 TDs and senators earlier today, it was pointed out that such a requirement will make the desire for affordable housing unachievable.
Section 76 of the bill provides that the minister “may prescribe the price” or a method for calculating the price, and may prescribe different prices for different geographical or administrative areas. This provision is causing concern to TDs and senators.
A spokesperson for Mr O’Brien said: “The minister will determine the level of affordable housing to be delivered on public lands, which will impact its market value and sale price. This will avoid land cost issues and result in much-needed social, affordable and cost rental homes for people.”