First time home buyers face hike of up to €10,000 under State tax plan

FIRST time buyers could face a hike of up to €10,000 on the cost of a new home in the coming months, adding to the huge tax burden they already bear on entering the housing market.

Matt Gallagher, chairman of the Irish Home Builders Association warned the new tax was being plotted by local authorities around the country and if it becomes a reality it will add further to the massive pressure young people face when trying to get on the housing ladder, he said.

Already the State takes €92,260 in taxes on a new home costing €250,000.