Vol. 572 No. 3
495 Mr. Morgan asked the Minister for the Environment Heritage and Local Government the measures he intends to take to address the increasing problem of affordability in the housing market; and if he will make a statement on the matter. [22812/03]
The Government's strategy has been to increase housing supply to meet demand and to improve affordability, particularly for first time buyers. There is clear evidence that measures implemented to boost supply, such as the Government's investment in infrastructure, and the increased residential densities now being achieved as a result of the residential guidelines produced by my Department have been successful in addressing the strong demand for housing and moderating house price increases. Last year, 2002, was the eighth successive year of record house completion, with 57,695 units completed, an increase in output of 9.7% on 2001, and more than a 30% increase in the housing output in the Dublin area, and this positive trend in supply is set to continue for this year. Average year on year house price increases have been reduced from a peak of around 40% per annum in 1998, to more moderate levels currently.
Affordability has also been assisted by a range of factors including high levels of economic growth which have facilitated lower tax levels and increased disposable income, increased employment, lower mortgage interest rates, and low inflation.
