Sir, – I notice that the 20 per cent housing deposit proposal by the Governor of the Central Bank Patrick Honohan is unfortunately coming under fire.
The opponents are apparently pushing for some sort of insurance scheme to cover half the deposit.
This is on the lines of the misguided “Help to Buy” scheme in the UK which contributed significantly to the escalation of house prices, especially in the Greater London area.
Have the opponents of the Central Bank proposal forgotten so quickly that the crash of 2008, and the consequent suffering of our people, was caused largely by irresponsible lending and an unsustainable borrowing frenzy?
The recent unsustainable increases in house prices can only lead to one thing – a further crash and more suffering.
The Central Bank is simply attempting to avoid the excesses of the past.
The 20 per cent deposit would be to the advantage of those wishing to purchase a home.
It would stabilise or even reduce house prices. What on earth is wrong with that? – Yours, etc, PJ DRUDY , Emeritus professor of economics, Trinity College Dublin,