Government scheme 'could create another property bubble'
The Government could create another housing bubble if it goes ahead with its planned Mortgage Guarantee Scheme, a leading property consultants firm has warned today.
Savills has launched its pre-Budget submission this morning, and says that providing house-buyers with more money while the property supply is low will only fuel further price inflation.
It is calling on the Government to delay the Mortgage Guarantee scheme for 12 months, and instead introduce other incentives to free up the property market.
"Why don't we do things to try and utilise the existing housing stock a bit more intensively?" said Savills Ireland director of research John McCartney.
"So, for example, why don’t we incentivise people to downsize and free-up that space for a growing family that's maybe trapped in an apartment?
"But at the moment there are various impediments to that, stamp duty and various things like that, and we've made recommendations to remove those blockages in the system."
