Measures to kick-start the property market in Tuesday’s Budget have been welcomed by Ireland’s largest property website, MyHome.ie.
Minister for Finance Michael Noonan altered the rules regarding mortgage interest relief to encourage first time buyers to get on the market in 2012. His announcement was quickly followed by a commitment from Bank of Ireland to make €1.5 billion available in funding for mortgages next year.
While welcoming the measures though, managing director of MyHome.ie, Angela Keegan, said she didn’t think the changes announced in the Budget would have any impact on prices in the short to medium term.
“First Time Buyers drive the market and there is no doubt that the measures on mortgage interest relief are to be welcomed.
“Given the trend towards large auctions I think we will see more foreign investors coming into this market as they now know that there will be no Capital Gains Tax if they hold onto the property for 7 years. So these are very positive measures, all the more welcome given the torrid market conditions over the last three years.
“However the prospect of three more harsh budgets together with high unemployment levels and the Euro crisis means any rise in house prices is a long way off.
“Hopefully finance will become more freely available in 2012 but confidence or the lack of it, may well be the biggest issue,” Keegan said.