THE government should use the budget to intervene in the ailing housing market, according to a Clare property expert.
Philip O’Reilly, Managing Direc- tor of Philip O’Reilly Property Plus, says that while any upswing re- mains largely dependent on market conditions, certain areas, including the large amount of vacant hous- ing stock, must be addressed in the forthcoming Budget.
Mr O’Reilly says financial incen- tives should be provided to first time buyers to restore confidence in a housing market where values have fallen. “One area they should be looking at and doing something about is encouraging first time buy- ers to purchase unoccupied housing stock. This could bring a lot of new entrants into the market’, he said.
“If you take any house that costs €300,000, included in that is VAT of €39,000. Why not introduce a
scheme whereby €10,000 of that fig- ure would be made available to first time buyers. It could be limited to a certain time period, say for people who sign up for it before June 1”’.
Any interference on a micro level must also be balanced against mar- ket conditions and other macro-level events, said Mr O’Reilly.
“At one level, with the housing market under pressure, there are cer- tain things that need to take place at a microeconomic level, because if something isn’t done, it could have substantial implications for employ- ment and other areas”.
‘There is a limit to what kind of in- terference could take place that would have a positive impact on the hous- ing market. There are a lot of other forces at work, the credit crunch, the difficulties faced by the building trade. We shouldn’t be talking about €5,000 or lower figures, it has to be €10,000”, said Mr. O’Reilly.