Extension of mortgage relief shows Ireland’s housing spending increasingly based on vibes [Video]

ANY MILTON FRIEDMAN fans in the house?

The late American Nobel Prize-winning economist could spit some fire – a particularly memorable quote goes: ‘Nothing is so permanent as a temporary government program.’ 

Great quote, what a great quote… Now, apropos of nothing – who else was absolutely floored that Ireland decided to extend mortgage interest relief (MIR)?

The measure costs about €125 million a year and has been largely derided by economists, who say it transfers money to the wealthy. (The details of how MIR works are explained here, but essentially it refunds part of the interest paid on mortgage loans up to a maximum value of €1,250 per homeowner.)

Knowing the measure was somewhat controversial, the government promised that the measure was a strict one off. In Budget 2024, it was called a “one-year relief”.

Of course, this one-off has now become a two-off, with MIR extended for yet another year in Budget 2025.

Given that we’re due a new government in the …