Labour plan to help fund house purchases

Labour Party leader Pat Rabbitte last night proposed a radical new plan whereby the State would jointly buy homes with tens of…

Labour Party leader Pat Rabbitte last night proposed a radical new plan whereby the State would jointly buy homes with tens of thousands of young homebuyers.

Under the scheme individuals would buy as much of a share in the house as they can afford, with the State paying the rest, though they would be able to buy more of the house over time at market value.

Last night Labour said the plan would cost the State €100 million a year in mortgage interest, though it would "over the course of time" save taxpayers' money because it would cut the demand for local authority homes.

At Labour's annual conference in Dublin last night, Mr Rabbitte said the housing crisis has created "impossibly long" housing waiting lists and forced unsustainable commutes upon workers.

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"We have to come to grips with this issue. What is required is a mechanism that allows people to get a foot on the housing ladder," Mr Rab told delegates.

Unlike existing affordable housing schemes, which are limited to those earning below €40,000, homebuyers would not have to meet income limits, nor would they face restrictions about selling the house at any time, he said.