Finance Minister Michael Noonan has admitted that his plans to help first-time house buyers in the Budget does run the risk of increasing house prices.

Michael Noonan is set to announce the scheme on October 11. It will be backdated to those who have bought a property since July 19.

He told the Budgetary Oversight Committee today that he cannot announce too much for fear of disrupting the market, but did reveal that the Central Bank approved his plans.

“Anything we’re doing, we’re doing with the full knowledge of the Central Bank,” he said.

“And the Central Bank knows exactly what I have in mind, and they approve of it.

“So, you’ll see on Budget Day when we give the full details. I think it’s going to be a pretty good scheme.”