Written Answers. - House Prices.
Bernard J. Durkan
Question:
52
Mr. Durkan
asked the
Minister for the Environment and Local Government
the impact, if any, of actions taken following the publication of the Bacon report, with particular reference to the attainment of affordable housing; the extent to which house prices have been reduced or otherwise in the past 12 months; the number of people who have benefited from house price changes in this period; and if he will make a statement on the matter.
[6012/00]
Bernard J. Durkan
Question:
241
Mr. Durkan
asked the
Minister for the Environment and Local Government
the extent, if any, to which his proposals or actions have had the effect of reducing house prices or bringing house prices within the reach of earners of the average industrial wage; and if he will make a statement on the matter.
[6211/00]
I propose to take Questions Nos. 52 and 241 together.
Following publication of the Bacon reports, the Government acted promptly and decisively, implementing a range of measures in its two policy documents, Action on House Prices, April 1998, and Action on the Housing Market, March 1999, to maximise and expedite housing supply to meet demand, secure house price stabilisation, address affordability issues and ensure balanced growth of the housing market in the future. Measures introduced by the Government have clearly taken effect to maximise housing output and moderate house price increases. Principal supply side measures include the serviced land initiative, which will provide more than 100,000 additional serviced sites, fast-tracking of key infrastructural projects to increase the supply of land for housing, and measures to ensure better utilisation of housing land, including higher densities at appropriate locations. The results of these actions are reflected in increased output, with over 46,500 completions nationally in 1999 which is up 9.8% on the 1998 total. Houses are being built at over twice the 1993 level, and we are on track towards a target of 50,000 completions per year.
Other Government initiatives that are helping to assist affordability for lower income and first-time purchasers include withdrawal of investor incentives, reduced stamp duty rates and improvements to the local authority shared ownership and affordable housing schemes, while the £3,000 grant continues to be available to first-time purchasers of new houses. Single earners and families on single incomes of up to £20,000, which is above the average industrial wage, qualify for both the shared ownership scheme, under which over 1,350 houses were purchased in 1999, a 68% increase on 1998, and for the affordable housing scheme which was launched in March 1999. The Planning and Development Bill will also underpin the supply of adequate housing land which will contribute to the provision of social and affordable housing.
It is widely accepted that house price increases are moderating. Provisional figures for 1999 indicate average house price increases of approximately 16% for new houses and 18% for second-hand houses on a national basis – well below the peak rates of increase recorded in mid-1998. This moderating trend is confirmed by other independent house price surveys.
