A new housing strategy which includes help with a deposit payment for first-time house buyers and tax relief on rent, was introduced yesterday by Fine Gael.
Ms Olivia Mitchell TD said the party on return to Government would implement radical solutions to tackle the chronic housing crisis. The stategy would cost in total €500 million in the first year.
The strategy included a house deposit savings scheme. In the FG document Just Housing it is stated the scheme would give buyers almost €1 for every €3 they saved. An interest bonus of 30 per cent up to a ceiling of €7,500 would be paid where savings were used for a deposit on a house.
"Young persons who can save €25,000 will receive €7,500 so they can make a €32,500 deposit on a house," the document states.
It is also proposed to double mortgage interest relief to €10,000 for first time buyers over five years.
Ms Mitchell said another policy would be to give tenants tax relief on rent on the same basis as mortgage interest relief was given to house purchasers. Legislation would also be enacted to improve security of tenure and clearly establish the rights of both tenant and landlord.
"Discriminatory tax treatment and the lack of legislation which clearly establishes the rights and responsibilities of both tenant and landlord has prevented the emergence of rented accommodation as an accommodation form of choice," she said.
She said FG's new proposed Housing Authority would have a major role to play in overseeing compliance with local authority development plans. There would also be a commitment to providing Traveller accommodation where local authorities failed to meet their responsibilities.
Other policies include increas- ing eligibility for affordable and shared ownership schemes and qualifying the household income ceiling up from €32,000 to €50,000; increasing eligibility for subsidy under shared ownership schemes from €25,400 to €40,000 and the subsidy itself up to a maximum of €4,000.
The stategy also includes targeting 37,000 social and affordable housing units and also ending the poverty trap whereby rent supplements were dependent on unemployed status.