Serious concerns have been raised after a report predicted a €300,000 house will cost €321,000 next year.

The report by Davy Stockbrokers "should set alarm bells ringing in the Department of Finance", according to Sinn Fein.

Finance Spokesperson Pearse Doherty TD said: "The government's help to buy scheme commands zero support from experts and only yesterday the Governor of the Central Bank detailed his serious concerns regarding the supposed merits of the initiative.

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"Once again, we see a report that clearly points to lack of supply as the issue driving up house prices and yet we still have the nonsense of a demand side solution being pushed by government.

"At what point will common sense kick in and this scheme be discarded or at least suspended pending a proper analysis?

"Sinn Fein, unlike others, is opposed to this scheme because it will increase prices, increase the debt burden on young families and effectively transfer €50m of taxpayers' money into the pockets of builders."

(CD/LM)