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The Central Bank has raised serious concerns about the Governmentâs new shared equity loan scheme, suggesting it could saddle potential participants with big debts while inflating house prices generally. The scheme, which involves the State paying for up to 30 per cent of the cost of new homes in return for a stake in the property, is part of the Governmentâs Affordable Housing Bill and is intended to drive home ownership. However, in a submission to the OireachtasJoint Committee on Housing, the regulator said there was, as yet, âlittle detail around the contractual obligations on those that might receive this financing.â ....
ESRI claims shared equity schemes risk driving up prices Schemes include State s €75 million home-ownership programme Tue, Feb 16, 2021, 01:00
Shared equity schemes like the Government’s €75 million home-ownership programme risk driving up prices and worsening affordability issues, the ESRI will tell an Oireachtas committee on Tuesday. The think-tank is among groups giving their feedback on Minister for Housing Darragh O’Brien’s Affordable Housing Bill to the committee on housing. ESRI researchers Conor O’Toole and Rachel Slaymaker will argue that a shared-equity loan scheme will be a benefit “in theory” as it would facilitate borrowing for households currently constrained by the amount needed to finance a purchase. ....