Sinn Féin spokesperson on Finance, Pearse Doherty TD, has warned that the October surge in mortgage approvals, points to a continued spike in house prices.

Today’s figures, published by the Banking and Payments Federation, showed that the average mortgage approval amount for first-time buyers had increased by €10,000 in the past 12 months.

Teachta Doherty said:

“A total of 5,207 mortgages were approved in October, worth more than €1.2 billion in lending.

“Behind the headline figures is a further spike in house prices, reflecting the broken housing policies of this and previous Governments.

“For first time buyers the value of the average mortgage approval has risen from €235,000 to €245,000; an increase of €10,000.

“Overall, the value of the average mortgage approval rose by €15,000 in the past 12 months.

“This reflects a continued rise in house prices which is only being compounded by Government policy.

“In July the Government turbocharged the Help-to-Buy Scheme.

“This is a scheme that disproportionately benefits high-income earners, transfers taxpayers’ money directly into the pockets of developers and increases property prices.

“The Government were warned by the ESRI and others that expanding the Help-to-Buy Scheme would only inflate house prices, hurting the majority of people trying to get on the property ladder.

“Today’s figures bear this out.”