I wish to share time with Deputies O'Connor, Batt O'Keeffe and Sean Power.
Last year was the eighth year of record housing output with almost 57,700 completions nationally, an increase of almost 10% on the figure for 2001, during which 52,600 units were completed, also a record. Housing output in Dublin also reached record levels last year, with more than 12,500 units built, an increase of 30% on the 2001 figure. More than 29,600 houses were completed nationally in the first six months of this year and all the indicators are there will be record housing output again in 2003.
The Government has consistently stated supply is the key to addressing the high cost of housing and its focus has been on investing in infrastructure, that is, the provision of water and sewerage facilities, and to ensure the effective use of more serviced land through residential density guidelines. These policies are having positive effects. Since 1997, more than 280,000 houses have been built nationally. House prices were increasing at up to 40% annually until 1998 but, thankfully, the rate of increase has reduced substantially in recent years. The Government's focus will be on maintaining a strong supply of houses to meet the high demand and moderating the rate of increase in house prices to bring the housing market back to normal.
The greatest problem facing young people is securing a mortgage to purchase a house. Four years ago it was estimated 500,000 new units would need to be completed to meet housing demand between then and 2010. The Government enacted Part 5 of the Planning and Development Bill 2000 which was later amended by the Planning and Development (Amendment) Act 2002 to assist in the provision of social and affordable housing. The effects are only now coming on stream and many local authorities will, over the coming months, reap the benefits of the provision which developers lobbied to have removed from the legislation but I am pleased the Minister at the time insisted on its inclusion. While we must wait to witness its merits, many local authorities will reap the benefits. My local authority, Carlow County Council, will open two major developments next month under Part 5, which is welcome.
The number of households whose needs are met though the various social and affordable housing measures has increased by almost 50% since 1998. Local authority housing output is at its highest level in 15 years and record output is expected by the voluntary and co-operative housing sectors this year. The Government is addressing the needs of existing tenants in run-down estates through regeneration and remedial schemes. It is important that we do not make the mistakes of the 1960s and 1970s when thousands of low costs houses were constructed and costly remedial works had be carried out on the schemes in the mid-1980s. Some remedial works were more costly than the original housing.
Much criticism was foisted on the Government when the first-time buyer's grant was abolished more than a year ago but it is generally accepted the abolition of the grant was a positive move because, if it had been index-linked from its inception, it would be worth between €12,000 and €15,000 per house today. The Government is to be commended for making major tracts of State land available in counties Dublin, Kildare and Meath for affordable housing and I hope more will be made available in other counties where suitable land is identified among the State's resources.
Since the homeless strategy was launched in 2000, the quality and range of services provided for homeless persons has improved. Funding to local authorities for the provision of accommodation and related services for homeless persons increased by €12.5 million in 1999 and was increased to €50 million in 2003.