McCreevy Favours Speculators over First Time Buyers

national | miscellaneous | news report

Friday January 24, 2003 17:27

by Graham Caswell - Green Party

caswell at indigo dot ie

The speculators got a 13% return last year...

People with two, three and four houses are pushing first-time buyers out of the market because the government is giving them tax breaks to do so.

"The biggest reason for the four- fold increase in house prices as reported
today by the The Permanent/TSB Annual House Price Index is a direct result of
new tax incentives granted to investors by Charlie McCreevy in the last budget"
claimed Green Party Finance Spokesperson, Dan Boyle T.D. Mr Boyle went on to
say that this increase "makes it even more difficult for first time buyers to
enter the market and consequently increases the numbers waiting on local
authority housing lists".

The Green Party has consistently critised the Government for adopting a housing
policy which in many cases benefits builders, developers and estate agents
rather than new home buyers and those waiting for local authority housing. "The
series of tax breaks given to property investors by this Government has done
more than anything else to pump up property prices over the last number of
years. We need to claw back some of these tax breaks to bring more balance and
equity into the system." concluded Deputy Boyle.

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Comments (2 of 2)

It's called landlordism . .

by Eamonn Crudden

Fri Jan 24, 2003 20:29

We used to blame it on the english.

Also Rent Supplement Payments to those unemployed/single mothers/those on very low income living in private rented accommodation are passed on (from taxpayers via Health Boards) to the same speculators without any effort being made to ensure they are paying tax on their rental properties.

This fundamentally represents the ongoing privatisation of public housing and unites the FF pols, Higher income professionals, FG, Guards, prison officers and even Labour and the Greens in a community of common interest.

I always think it is important in an Irish context when discussing this issue to keep in mind that it was political activity and civil disobedience centred around housing issues that sparked off the civil rights movement in the 6 counties in the late 1960's - which in turn led on to 'the troubles'.

'Investors' are a large part of the problem

Fri Jan 24, 2003 17:33

The government increased tax breaks to investors six months before the last election and it didn't want house prices to fall before the election since more voters own houses than don't. First time buyers were sacrificed.

These tax breaks are not designed to promote the construction of new rental units. Instead they are used to buy up the existing housing stock and compete directly with those thrying to own their own home.

The result is that Irish society is splitting into those who own several houses and those who own none and are forced to pay the handsome returns to the 'investors'.

To encourage speculation in food during a time of famine would be unconscionable. To encourage speculation in water during a drought or medicine during a time of sickness would be clearly seen as immoral. Why is this government encouraging speculation in homes during a housing crisis?

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McCreevy Favours Speculators over First Time Buyers

Comments (2 of 2)