A construction agency has seen a boom in business since the Help-to-Buy scheme

Abbey, a property developer, has high hopes for the Irish housing market.

They are seeing huge gains as the house prices keep increasing. They are especially reaping the benefits from the Help-to-Buy scheme. That’s why they are against the review of the scheme.

The intention of the Help-to-Buy scheme was to encourage first-time buyers and to speed up new supply of houses. It can give first-time buyers up to €20,000 in tax rebates. The scheme, instead, has apparently increased home values than raise supply of new homes. This has raised concern for the Minister for Housing, Eoghan Murphy, which brought up the review of the scheme.

 

The Central Statistics Office published on Tuesday that the Irish housing prices went up by 11.9 percent in May from the previous 12 months, driven by a 12.8 percent increase outside of Dublin.

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Eoghan Murphy wanting to expand mortgage-to-rent

Minister for Housing wants to decrease rules on mortgage-to-rent (MTR) scheme to help expand the programme. Relaxing the criteria will dramatically increase the number of MTR homes.

The goal of the scheme to allow an option for people who can’t qualify for social housing.

How it works?

A group of investors will buy trouble mortgages and will let the houses to the tenants as a form of social housing.

The aim of the programme was to aid around 250 homes a year. Currently, the statistics have shown that from 2012 to the end of March only 240 have went through the programme. This is out of 3,672 applications submitted.

The reason?

This scheme can take up to an 18 month turnaround which is too long for a lot of investors.

To help out the scheme currently, a homeowner can surrender their home to the lender which goes to the Housing Agency. They can offer them an approved housing bodies (AHBs). Then AHBs buys the home and lets it to the borrower as social housing.

The revised version of MTR.

It …

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