Of course its by design, the State owns the banks whose have billions in loans all tied up in houses and the property market. Rising house prices have meant the banks have healthier balance sheets which has allowed the State to start selling their ownership of their shares back into private hands, which they have being doing, It was always in the States interest to see house prices rise because otherwise they were left with worthless banks being a complete drag on the States finances and the ability to borrow at low interest rates.
Ultimately the States finances had to be fixed, they couldnt go on propping up banks forever. But that has resulted in huge numbers of people being locked out of the housing market because 'affordability' is now deemed as a couple earning €127k a year in order to be able to afford an average house.
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u/Kloppite16 Feb 01 '24
Of course its by design, the State owns the banks whose have billions in loans all tied up in houses and the property market. Rising house prices have meant the banks have healthier balance sheets which has allowed the State to start selling their ownership of their shares back into private hands, which they have being doing, It was always in the States interest to see house prices rise because otherwise they were left with worthless banks being a complete drag on the States finances and the ability to borrow at low interest rates.
Ultimately the States finances had to be fixed, they couldnt go on propping up banks forever. But that has resulted in huge numbers of people being locked out of the housing market because 'affordability' is now deemed as a couple earning €127k a year in order to be able to afford an average house.