Sinn Féin spokesperson on Finance, Pearse Doherty TD, has criticised the government for recklessly ignoring clear warnings that its shared equity loan scheme will push up house prices to the detriment of struggling home buyers.

This comes as the Central Bank today warned that the scheme could increase house prices while doing little to stimulate construction where it was needed.

Speaking this afternoon, Teachta Doherty said:

“Today the Central Bank gave a loud and clear warning that Darragh O’Brien’s shared equity loan scheme could pump up house prices even further.

“This comes after the ESRI, the Department of Housing and Secretary General of the Public Expenditure all also warned that it will push up prices.

“Despite the warnings, despite the evidence, this government is ploughing ahead with a scheme that will push home ownership further out of reach for the majority of struggling buyers.

“In research published today, the Central Bank warned that the scheme could increase house prices with little impact on the construction of new homes.

“This government is ignoring the evidence and pushing on regardless. Why?

“This scheme was designed and lobbied by property developers.

“It is a scheme that will boost their profit margins and dividends to shareholders, while locking in high prices for aspiring homeowners.

“How can the public trust the government to resolve the housing crisis they created by introducing such hare-brained schemes?

“House prices have increased by 82 percent in the past decade.

“This government wants to push prices even higher.”