The party made the call after a report by Daft.ie revealed huge jumps in house prices in the first three months of the year.
Finance spokesperson Pearse Doherty TD said the scheme must be suspended to allow a full review before too much damage is done to the housing market.
Teachta Doherty said: "This scheme was always a bad idea. It is, at its core, a demand side solution to a supply side problem. It has directly led to the massive hike in house prices we are currently seeing where prices in Dublin have risen by an average of €17,500 in the first three months of this year.
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"When it was proposed, with Fianna Fail facilitating it, the Minister agreed to a review after it was introduced.
"Figures I have obtained through parliamentary questions show that applications already made means that the estimated cost of the scheme could easily be exceeded and worryingly there is no cap on the scheme to prevent it becoming a run-away cost. I will be bringing these questions up with the Minister next week.
"The scheme should now be suspended with no further applications being accepted. In reality it has become a bribe to developers to do their job. Meanwhile the State is still failing in its obligations to build houses for its people."
(CD/LM)
