Labour Party to establish post office savings accounts to assist first time home-buyers

They also plan to reduce the national debt by almost 30% in the next five years

The Labour Party intends to establish post office savings accounts for first time buyers to help them to build up deposits for mortgages.

Under current rules first time buyers need to supply a deposit of 10%.

This is becoming increasingly difficult because of the rising price of rents.

Plans in the draft version of Labour's manifesto seen by the Sunday Independent would establish high interest saver accounts if they get re-elected.

The Central Bank says it will review its mortgage rules - but is unlikely to relax them.

In another statement, the Labour party pledged to put a strict debt brake into its general election manifesto.

The Sunday Times reports that the party is expected to cut the debt-to-GDP ratio by almost 30%in the next five years.

Tanaiste Joan Burton wants to reduce Ireland’s overseas debt from 97% of GDP to 70%, and will hold talks with Fine Gael on a possible joint debt target before the launch of the parties’ manifestos in February.