McCreevy expects measures to benefit first-time buyers

The Minister for Finance said he was confident the revised stamp duty rates would reduce costs for low to middle-income homebuyers.

Mr McCreevy said they would provide a particular advantage to first-time buyers. The Minister, who was moving a Dail resolution relating to the stamp duty changes, said he would publish a Finance Bill next week, encompassing the changes in the stamp duty regime, as well as the anti-speculative annual 2 per cent tax, which would apply for three years to certain residential properties other than a principal private residence.

"It is important to give assurance to those who are in the process of buying a home that the stamp duty changes are brought in with immediate effect from the time the Government announces its initiatives."

Mr McCreevy said recent moderation in overall house price trends masked the fact that prices at the lower end of the market were rising more rapidly than those at the upper end.

He added that deputies on all sides of the House were well aware of the increases, which were making things difficult for people who wished to enter the housing market. In particular, the problems were most acutely felt by those trying to purchase their first home.

"The Government has already taken a series of actions which were designed to increase housing supply, dampen investor demand, and thereby moderate house price increases.

"While these measures are having positive effects, the Government is now proposing a range of further initiatives to deal with continued rising demand for houses for owner-occupiers in particular."