Farce as just four apply for home loan
Submitted by admin on Mon, 02/16/2009 - 10:53
By Shane Phelan and Denise Clarke
Monday February 16 2009
A CONTROVERSIAL Government plan to get first-time buyers on to the property ladder can today be unmasked as an expensive flop.
Just four people have applied for the Home Choice Loan scheme, which could end up costing the taxpayer almost €300,000 in administration costs this year alone.
As well as a poor take-up, the scheme is also being examined by the European Commission's Competition Directorate, amid claims it breaches State aid rules by effectively attempting to bail out builders unable to sell new properties.
Opponents of the scheme have claimed it breaches competition rules and effectively turns the State into a sub-prime lender.
Maria Javorova, a spokeswoman for the EU Competition Directorate, told the Irish Independent it had received around 250 complaints from Irish people about the scheme.
"According to most of the complainants the Home Choice Loan scheme would entail an unfair treatment in favour of big property developers and construction companies in Ireland at the expense of the second hand property seller," said Ms Javorova.
"Moreover the scheme could have the effect of stopping house prices falling further to their market-adjusted level, distorting competition in the residential housing market and in the banking market."