Last year's budget sees Galway home buyers in the unusual position of being in the pink, rather than the red, with stamp duty changes and lowering prices improving property prices for first time buyers.

That's according to the Construction Industry Federation's Tom Parlon, who spoke at a meeting of the federation in Galway on Monday.

At the meeting Mr Parlon told delegates: "The choice and value that is now available in the market and the changes introduced in the recent budget mean that for many it is now actually cheaper to buy than rent. In many parts of Galway, monthly mortgage repayments are less than monthly rents."

Mr Parlon stressed the improvements in the market since the end of 2007, from a buyer's perspective. "2007 was an uncertain year on the housing market. A number of interest rate increases and ongoing speculation about stamp duty prompted many to postpone the decision to buy. Over the last number of months however a number of positive developments occurred that should boost buying activity in 2008. The decision by the European Central Bank not to raise interest rates last autumn brought relief to the market and the signals now are that interest rates may not rise for the first half of 2008."

First time buyers, said Mr Parlon, are now at a particular advantage. "The changes to stamp duty last summer and in the budget bring certainty, clarity, simplicity and, perhaps most of all, savings for all house buyers. First time buyers pay no stamp duty. Those thinking of trading up and investors, meanwhile, will save over €10,000 on the purchase of a house valued at €400,000 with savings of up to €30,000 available across other segments of the market."

The rent a room scheme, a doubling of mortgage interest relief, and budget increases to this has "significantly improved affordability" for first time buyers, he said.

"Already we have seen the impact of these changes with latest affordability index showing that the average working first time buyer couple will spend four per cent less on mortgage repayments this year than last year. This is great news for potential first time buyers throughout Galway, as it means that an average first time buyer couple will be paying 22.6 per cent of their income in mortgage repayments down from 26.4 per cent."

In an upbeat assessment of the property market in Galway, Tom Parlon of CIF pointed out that "there is no doubt that 2008 will be a buyer's market in Galway and represents an opportunity for people to get into the market and benefit from the series of changes that have been introduced in the budget."

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