House price increases are now almost three times higher than the rate of inflation
House price inflation is out of control because the government is pouring petrol on the fire of an already red-hot property market, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“The Residential Property Price Index published by the CSO today shows that property prices have increased by 10.9pc nationally in the year to August 2021, with prices in Dublin rising by 10.2pc and prices outside Dublin rising by 11.5pc.
“House prices have increased by more than 10pc in a year. These figures should be setting off alarm bells in the Customs House. House price increases are now almost three times higher than the rate of inflation. This is utterly unsustainable.
“What is the government going to do to control soaring costs? It’s only big idea, to solve the housing crisis, is to pour petrol on the fire of an already red-hot property market, through their proposed shared equity scheme.
“Why do they do this? Because the construction industry tells them it’s a good idea – and, they are not the ones being engulfed by the flames.
“Schemes like the ‘help to buy’ scheme and the ‘shared equity’ scheme will not increase the supply of affordable homes – they will ratchet-up prices to ever increasing unsustainable levels.
“The government does not want to make housing more affordable. The best way to make housing more affordable is to build homes that are affordable instead of continuing to waste money in subsidies for developers that push up prices.
“In that context, today’s figures, demonstrating further enormous increases in house prices, should come as no surprise.”
14 October, 2021
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