Plan to help first-time home buyers outlined

A TASK force on affordable accommodation, control of the price of building land and special measures to assist first-time house…

A TASK force on affordable accommodation, control of the price of building land and special measures to assist first-time house buyers are among proposals made by two of the State's largest unions.

Launching an "Action Plan on Affordable Accommodation" by SIPTU and the public sector union the CPSU, Mr Des Geraghty, national vice president of SIPTU, said that the accommodation crisis was the most critical public policy issue of the day.

The action plan calls for a top-speed, top-level and short-term Task Force on Affordable Accommodation, chaired by a senior Government minister with a brief to identify and co-ordinate the urgent actions needed by relevant departments and agencies.

The price of building land, it argues, should be controlled through price regulation and taxation measures which discouraged profiteering linked to land re-zoning and planning.

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Special assistance to first-time buyers could include increasing the first-time buyers' grant, paying it as a monthly subsidy over five to seven years; allowing it for second-hand as well as new houses; exempting first-time buyers from stamp duty and increasing mortgage interest relief from £5,000 to £8,000, to be tapered down over five to seven years.

The action plan calls for voluntary price regulation by the industry in relation to new homes and for legislation to prevent gazumping. It also urges the Government to address the needs of people requiring direct assistance.