Fianna Fail claims the new Central Bank rules will make life extremely difficult for first-time buyers.

Finance Spokesperson Michael McGrath TD said that while the bank has "softened" its approach the new rules may leave first-time buyers "trapped in homes that are unsuitable for their needs".

The new rules came into effect yesterday, 11th February.

Fianna Fáil Finance spokesperson Michael McGrath TD has said the new Central Bank rules on mortgage lending will result in many non-first time buyers being essentially trapped in homes that are unsuitable for their needs.

-- Advertisement --

Deputy McGrath said: "These new rules reinforce government policy which appears to be to discourage people from buying their own home. The government seem determined to impose European rates of home ownership in Ireland and, in doing so, are completely ignoring the legitimate aspiration of most people in Ireland to own their own home at some stage in the life.

"The introduction of a market value based Local Property Tax makes home ownership less attractive. Allied to this, the government looks set to allow mortgage interest relief to end entirely after 2017. In addition, the government has presided over a situation where large residential portfolios have been sold by NAMA to US private equity funds instead of directly to people in Ireland wish to buy their own home."

(CD/MH)