Spokesperson on Housing, Planning and Local Government Barry Cowen TD said the initiative will see first time buyers chasing fewer than 10,000 new houses or apartments earmarked for construction next year and described it the scheme as "useless".
He said: "This scheme is useless without any accompanying measures to increase supply. In fact it could exacerbate the housing crisis by overheating the new builds market, which in turn will lead to increased house prices.
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"The additional €150m allocated from the capital budget towards new housing provision is a positive development, but it's worrying that there is nothing in Budget 2017 to bolster the capacity of local authorities to deliver on social housing targets. Local authorities built fewer than 75 new social homes in 2015. This is the lowest output on record.
"All local authorities will require much more significant staffing allocations and expertise to dramatically increase new housing supply. This will require nothing short of a radical overhaul in the performance of local authorities throughout the country and this must be a priority for the Government."
(CD/MH)
