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Government should follow Honohan lead on mortgages - Doherty

7 October, 2014 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has welcomed the intervention of Central Bank Governor Patrick Honohan to place limits on lending for mortgages and has said the government should follow his lead with its own initiatives to help build a functioning mortgage market.

Deputy Doherty said:

“I welcome in principle the move to create a more responsible mortgage lending culture. I look forward to examining the detail of the Central Bank’s proposals.

“There can be no doubt however that these proposed moves on their own will not create a normal mortgage market. It can be one part of the solution but what is needed is a government commitment to the building of social housing. The answer to housing supply does not lie in tax breaks for the private sector.

“To date the government has dismissed any debate about whether a property bubble is emerging. The move by the Central Bank shows that there is concern about this possibility and the government cannot ignore that debate any longer.

“There are immediate moves that could be made too. I have drafted a Bill that would give greater power to the Regulator to prevent banks from increasing variable rates which they have been doing despite the lowering of ECB rates.

“Minister Noonan needs to lay out the role government will play in tandem with the Central Bank in containing the possibility of a bubble and how young families will not be put at even more of a disadvantage to speculators.”

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