A reduction of the income limit in the new Government Home Choice scheme has been called for by the President of the Institute of Professional Auctioneers and Valuers, Alan Redmond.

Home Choice Loan provides up to 92% of the market value of a property purchased for first-time buyers who wish to purchase a new property or build their own house. However, applicants must earn more than €40,000 as a single person and over €50,000 combined income as joint applicants.

“While this scheme is very welcome overall, weekend reports that the take-up has been extremely low so far is very disappointing news,” said Mr Redmond. “Clearly there is a need for an overall review of the scheme to speed up the process.”

Mr Redmond said he believed the income threshold of €40,000 was far too high and should be reduced to €25,000 for a single person and €35,000 for a couple.

“This scheme is an ideal way of using the huge oversupply of new houses around the country to provide a first home of first-time buyers at a reasonable price,” he said. “With prices substantially down right across the country there is excellent value in the market now and people should shop around as much as possible and make a purchase once they are satisfied.”

Mr Redmond said the market needed a vital incentive such as the Home Choice Loan scheme to get restarted and if some adjustments were made to it, he believed it could provide the trigger to rekindle the traditional active Spring property season.

The Home Choice Loan is processed centrally in Dublin and the mortgages are issued by four designated local authorities - Galway County Council, Kilkenny County Council, Cork City Council and Dublin City Council. The four designated local authorities operate the scheme on behalf of all remaining local authorities.

For further information on the Home Choice Loan scheme see www.homechoiceloan.ie

Ends

26 January 2009