Fianna Fáil express grave concerns about €6.1BN hole in Sinn Féin Housing Plan

The Fianna Fáil Party have today expressed their significant concerns in relation to the €6.1BN hole in the Sinn Féin Housing Plan and called on the Party to urgently publish its manifesto and outline their costings in detail.

 

The Sinn Féin Spokesperson on Housing has confirmed that should borrowers default under their convoluted ‘programme of affordable leasehold purchase homes’ the State would ‘step in and buy out the mortgage’ which effectively means that Sinn Féin will give a State guarantee to the 25,000 mortgages under their proposed scheme.

 

Fianna Fáil Minister and candidate for Dublin Fingal East Darragh O’Brien has raised serious concerns in the creation of a two-tier mortgage system and the fact that nowhere in their alternative housing plan have Sinn Féin budgeted for this €6.1BN State guarantee.

 

Commenting he said, “I think it is highly dangerous that Sinn Féin are promising people an illusion of homeownership while putting billions of euro of taxpayer’s money at risk. They have said themselves that this ‘programme of affordable leasehold purchase homes’ is “the most innovative part” of their policy platform which is a damning indictment of their plans.

 

Minister O’Brien continued, “Most fundamentally, at the centre of this flawed scheme is the fact that the Party cannot provide any assurances as to the role of commercial lenders and specifically whether or not they will provide mortgages on this scheme.

 

“We know there are significant concerns in relation to the ‘security’ of the mortgages under this scheme and the response of the Sinn Féin Party is for the State to guarantee these 25,000 mortgages without putting aside any funding to do so. It just goes to show how much the Party are making it up on the spot.

 

“In every public utterance the Party have made about this scheme they have been misleading at best. Just last week Eoin O’Broin said that homeowners under their scheme will “be able to do what they want with it as per any other homeowner” but we know that’s not true. Under this scheme you cannot sell the home to whomever you want and Sinn Féin will dictate the price at which you can sell it. This flies in the face of traditional homeownership.  

“Given the grave uncertainty and risk involved I believe it is high time Sinn Féin were honest with people and tell them about the moral hazard of creating a two tier mortgage system in the State, one in which a cohort of purchasers would have a safety-net if they were to default on their mortgage while the majority of other mortgage holders would not. I also want to know where the €6.1BN in guaranteed funds will come from? Given the Party haven’t budgeted for it in their plans they need to be upfront about how it will impact the Government balance sheet.

 

Mary Fitzpatrick, candidate for Dublin Central added, “Fianna Fáil in Government have tried and tested schemes in place which are working for First Time Buyers. Under the Help-to-Buy and the First Home ‘Bridge the Gap’ Scheme buyers across the country are getting an average €87,500 in State support to purchase their own home. 

 

"Sinn Féin will scrap both of these and all they have to offer in return is the pretence of homeownership.  

 

“Under their plan, the banks can’t guarantee they will even lend a mortgage to the prospective buyer, which generates massive uncertainty in the sector, damaging housing output.

 

“Fianna Fáil believes directly helping First Time Buyers must be a priority.

 

“Sinn Fein want to pull the rug from under them.”