First-time buyers are not Budget winners at all

THE consensus in the media seems to be that first-time buyers were the big winners from Wednesday’s Budget.

Did I miss something? The only shred of comfort given to first-time buyers was an increase in mortgage interest relief, worth an average €800 per year.

What Brian Cowen didn’t tell us, however, is that €750 of this was going to be completely eroded within 24 hours of it being announced, due to a hike in interest rates by the European Central Bank.

Like all of the increases in social welfare benefits or tax credits in the Budget, we are given something by one hand only to find it taken away by another.

Why on earth should first-time buyers be grateful for this token gesture? After all, the Government has itself contributed the most to the current plight of first-time buyers.

It scrapped the €3,800 first-time buyers’ grant in 2002; it added 1% VAT to the cost of a new house, at a cost of €3,000 to the average first-time buyer; and it hiked up development levies by an average of €4,000.

After robbing €11,000 from every first-time buyer for the past five years, does the Government really expect to be thanked for returning a net of €50 per year to them?

Mr Cowen made no attempt to reform stamp duty, and claimed that any attempt to do so would only benefit developers and speculators, at a cost to those purchasing a house.

You can imagine my scepticism at the thought that Fianna Fáil would turn down an opportunity to further enrich property developers. Surely it is a first?

Developers and speculators have made millions during this Government’s 10 years in office, while hard-working families are crippled by huge mortgages. Mr Cowen gives them €50 towards this, and gets his back slapped by the Taoiseach.

Perhaps if first-time buyers had as much help as Mr Ahern did when he was buying his house, they might feel a little less aggrieved.

Barry Walsh

Brookfield Hall

Castletroy

Limerick