Finance Minister Brian Cowen said the Government believed the best way to help first-time buyers was through mortgage interest relief, and not changes in stamp duty.
'In the current market situation, any stamp duty cuts would more likely than not be incorporated into the sale price and so end up in the pocket of the seller,' he told the Dáil.
He announced a doubling of the ceiling on mortgage interest relief for first-time buyers from €4,000 single and €8,000 married or widowed a year to €8,000 and €16,000 respectively.
This will be available to all those currently in receipt of first-time buyers relief who are in the first seven years of their mortgage. Mr Cowen said about 125,000 first-time buyers would benefit directly, at a cost of €60m in a full year.
He is also raising the ceiling on interest relief for non-first time buyers from €2,540 single and €5,080 married to €3,000 and €6,000 respectively. The Minister will also increase the rent relief for those living in private rented accommodation by more than the rate of inflation to assist those facing increased rental costs. The total cost of all these measures together is €74m in a full year.
