Varadkar misses the point on affordability of housing

TAOISEACH Leo Varadkar has doubled down on his view that the so-called ‘bank of mum and dad’ is an option for homebuyers who are struggling to put a mortgage together. Varadkar’s view sparked outrage yesterday as he was accused of displaying a “posh boy” mentality when he told the Dáil “lots of us” got a parental loan.

The Taoiseach has politely clarified he didn’t receive any money from his parents for a mortgage deposit.

“Raising money for a deposit can be really hard, especially if you have other bills like rent or childcare,” he said. “So, lots of people get help from their family when raising a deposit for their first home.”

Varadkar says this might mean getting a site in a rural area or inheriting “a bit of money from an elderly relative”.

“There’s nothing wrong with any of it, it’s not a mark of privilege. It’s what happens every day in middle Ireland,” he added. “But I also realise that’s not an option for lots of people who are trying to secure a home, and that’s why the Government is working so hard on this matter every day.”

The primary problem for Varadkar is he will be accused of being out of touch and part of an elite who don’t know what it’s like to struggle to get a deposit together.

The real problem is he’s missing the point that the lack of affordable housing means ordinary couples on modest middle incomes are genuinely hard-pressed to reach the deposit target. The bank of mum and dad has to be tapped as a result – for those lucky enough to have an account.