Amidst speculation about its abolition, Finance Minister Paschal Donohoe has said he will "signal well in advance" if he is to make changes to the Help to Buy mortgage scheme.
His comments came in response to Fianna Fáil's finance spokesperson Michael McGrath, who pointed out that there has been "considerable speculation" from Government ministers that the scheme may be scrapped.
Deputy McGrath said that the speculation is causing uncertainty in the property market.
Mr Donohoe said that Indecon Economic Consultants were appointed in April to carry an independent economic assessment on the effects of the Help to Buy Scheme.
That report is scheduled to be completed by the end of the August.
"Once received the contents and findings of this report will be considered and I will decide on any appropriate actions to be taken in the context of my deliberations as part of the annual budgetary process," the Minister said.
Mr Donohoe said the Government remains of the view that the incentive has the potential to increase the supply of new build homes.
He said that speculation concerning the abolition of the scheme will not impact negatively on those who have made applications for the scheme.
"I will signal well in advance, any proposal of changes to the incentive following my consideration of the Indecon report," the minister stated.
Deputy McGrath pointed out that the speculation is coming from Government.
He said the impact analysis should have been done before the scheme was put in place.
Speculation, triggered by comments made by members of the Government has caused a huge amount of uncertainty in the market. First time buyers are rushing into the market and leading to a spike in the amount of new homes available, Deputy McGrath said.
He asked when the minister will clarify the situation and bring an end to the uncertainty.
He also asked if the Minister will wait until mid-October to make an announcement even if he has the report by the end of August and the report shows the scheme is pushing up prices.
The Minister said that any changes made to the scheme will be signalled well in advance "in an understanding of the effect my words in relation to this scheme might have on people who are considering to buy using the scheme."
He quoted figures the Revenue Commissioners have shared with him on the performance of the scheme to date.
He said that "in terms of the property value against which applications of this scheme have been drawn down against, just under 80% of these applications have been property purchases less than €375,000".
Approximately 60% of applicants for this scheme have had a loan to value ratio in excess of 85%, he added.
Deputy McGrath believes the Minister is suggesting that he is preparing the ground to abolish the scheme given that he has used the phrase "well in advance" three times.
