Average house costs 11 times average wage
The cost of a house is now 11 times the value of the average pay packet, the Dáil heard today.
Greens leader Trevor Sargent said the price of housing was now creating the biggest financial pressures on young families.
The Dublin North TD accused the Taoiseach of ’talking up’ housing prices and called for a clear Government statement on the issue of stamp duty.
He claimed political parties were getting involved in a ’Dutch auction’ by trying to undercut each other on the tax.
“Nothing will be done about house prices as a result of that. Any auctioneer will advise that there is a stalling of the market as it waits to ascertain whether any of these things will happen,” he said.
However Taoiseach Bertie Ahern added that less than 30% of the total take from stamp duty comes from first-time buyers. About one-third comes from the expensive end of the market.
Stamp duty is charged at between 6-9% on the price of a new home.
Mr Ahern said: “The Government is always prepared to listen to arguments and debates but one should note that over one third of stamp duty on houses is derived from the more expensive upper end of the market.”
Defending the tax, he added that revenue from the tax is invested in health services, schools and welfare.
Last week Finance Minister Brian Cowen dampened speculation that stamp duty on house sales may be reduced in December’s Budget.
Tánaiste Michael McDowell suggested at his Progressive Democrats party think-in last month that the burden of the tax on home buyers needed to be addressed.
Mr Sargent replied: “I understand the stamp duty take for this year is approximately €70m in excess of expectations. The Government is raking it in.
“Will the Taoiseach do anything about this matter?”
Mr Ahern also said that during the period 2007 to 2009, the Government plans to build 27,000 affordable houses.
