FINE GAEL has called for a home loan scheme for first-time buyers unveiled in last October’s budget to be scrapped, dismissing it as a “PR stunt”.Housing spokesman Terence Flanagan said nobody had drawn down a loan under the Home Choice Loan scheme.
“It is clear that the scheme was nothing more than a ‘PR stunt’ rather than a meaningful scheme. It should never have been introduced and it is clear now that it must be abandoned.”
Under the terms of the scheme, the Government lends 92 per cent of the purchase price of a newly-built house to a prospective homebuyer, who must be a first-time buyer earning more than €40,000 per annum to qualify.
Mr Flanagan said he received new information from the Minister of State for Housing, Michael Finneran in the Dáil this week.
“According to the Minister, 1,400 people have registered an interest, 33 people have applied for the scheme, two people have been approved, yet no loans have been drawn down,” he said.
“If it were a serious plan, there would be more than two prospective homeowners receiving approval.”
Mr Flanagan said the scheme had cost close to €300,000 to administer “which is another example of Government waste.”
Mr Finneran said that the scheme was a temporary measure which was being kept under constant review.
