Wednesday 7th December 2005

ANOTHER KICK IN THE TEETH FOR HOMEBUYERS

Young Fine Gael President Patrick O’Driscoll has slammed the Minister for Finance for ignoring the plight of young people who can’t afford to buy their first home.

O’Driscoll stated:"45% of the cost of a house is paid in tax to the State. Any relief that first-time buyers received last year by exempting them from paying stamp duty on second-hand houses up to €317,500 has now been absorbed by the increase in house prices to an average in Dublin of €340,850. Young people starting out in life are being crippled by an outrageous poll tax on their first home.”

"The Government has yet again lost an opportunity to help young people. They clearly have no long-term plan on this issue. Last year’s budget did nothing for young people, due to house price inflation, and because of this Government’s infatuation with fad and fashion they have now forgotten about the young homebuyer.

“Because of this Government's botched policy on housing, there are over 42,000 people under-35 still living at home with their parents because they can’t afford to buy their own home. This Government's contempt of young people continues.”

Fine Gael in Government would aid first time buyers by introducing our three-point plan of action:

· Abolish all stamp duty for First Time Buyers on properties valued at less than €400,000.

· Provide for an SSIA-type saving scheme that gives First Time Buyers €1 for every €3 saved for a deposit.

· Frontload mortgage interest relief to the first 7 years of mortgage payments, giving help when it is most needed