NAMA chairman denies they are creating another housing bubble with new scheme

NAMA chairman denies they are creating another housing bubble with new scheme

Frank Daly of NAMA

NAMA chairman Frank Daly has insisted that their new 80:20 Deferred Payment Initiative is not an attempt to start a new housing bubble.

The agency released details of 115 properties yesterday as part of a pilot scheme that protects buyers from falls in the value of their property up to 20% for the next five years.

Commenting on the scheme, Mr Daly said there was “very little risk for the buyer.”

He said: “We do not aspire to the type of market that it was this country’s misfortune to have experienced in recent years.”

NAMA also denied that they were acting as a bank or seeking to create a new housing bubble.

Mr Daly said he did not want it to be seen as NAMA gambling with 20%, instead calling it a “managed risk” on properties that would be bought and inhabited, versus the current situation where people with mortgage approval might be afraid to draw down the mortgage for fear of negative equity.

Mr Daly said: “We believe the prices we are offering represent fair value.”

The 29 units for sale at Delvin Banks in Naul, Co Dublin, for example, are in the region of €175,000, while at Brown Woods Barn in Dublin 22 properties are available at €335,000. Both of these developments are on view this Saturday and Sunday from 2pm to 4pm.

Properties are also available in Cork and Meath under the pilot scheme, which is expected to be rolled out across 750 properties before the end of the year.

Leave a Reply