The Government has been accused of going back on commitments to reintroduce Affordable Housing Schemes to help middle income families who do not qualify for social homes.

Fianna Fáil Spokesperson for Housing, Barry Cowen TD called for the State has to get back into the business of subsidising affordable housing.

Speaking on the revelation that house prices will only start at €470,000 in the first housing development to benefit under Government's new Local Infrastructure Housing Activation Fund (LIHAF) Deputy Cowen commented: "The decision by Minister Murphy and the Government that there is to be no reintroduction of Affordable Housing Schemes abolished in 2012 is driven by misguided market fundamentalism.

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"Let us be clear, neither the LIHAF nor the Land Bank Plan are Affordable Housing Schemes. This can be clearly seen in the unaffordable prices in developments benefitting under these programmes.

"While a new housing supply is important, it is not what ultimately matters. Housing affordability, being able to affordable somewhere decent to live, is what matters for low and middle income families.

"The Government's strategy of abolishing the middle-tier of subsidised affordable housing has created a divided and skewed market for middle income families. These are families who do not qualify for social housing, but who are forced to hand over 40 to 50% of their wages per month on rent in Dublin, Cork and elsewhere."

(CD/LM)