05 August 2003

SDLP claim home owners would be better off in Euro

On the day leading UK bank Halifax claimed the UK housing market is strong with house prices increasing, the SDLP have said that joining the Euro will deliver a better deal for home-buyers.

The party's housing spokesperson, Eamonn O'Neill said that although interest rates have fallen to their lowest levels in nearly 50 years, home owners in Northern Ireland were still paying more than residents in the Republic's border counties.

He added: "Following the cut in rates announced last month, the base rate is now 3.5% here. While this is undoubtedly to be welcomed and has made borrowing more affordable, we cannot but envy the 2% base rate applying to our neighbours from as close by as Monaghan.

"According to pro-Euro lobby groups, this means that on a monthly mortgage of £500 with 25 years to run, a borrower would be saving around £80 per month.

"At a time when house prices have rocketed and first-time buyers are finding it particularly difficult to find an affordable home, this is yet another good reason to join the Euro, using co-operation at international level to deliver a better quality of life her at home."

Today's figures from Halifax revealed that the bank found that prices rose by 1.3% last month, and over the past three months house prices have risen by 3.4% – in line with the 3.4% increase during the preceding quarter.

(MB)