Vol. 214 No. 2
asked the Minister for Local Government if he is aware of the recent steep increase in the cost of houses, particularly houses purchased under the small dwellings acquisition schemes, and of the hardship this increase has caused for many purchasers; what action he proposes to take to deal with the problem; and if he will make a statement on the matter.
63.
asked the Minister for Local Government if he is aware of the excessively high prices being demanded for SDA type houses and the hardship caused thereby; and if he will state what steps he proposes to take in order to bring house prices to a reasonable level.
64.
asked the Minister for Local Government if he will, in view of the increased cost of houses, raise the limit on loans given by local authorities under the Small Dwellings (Acquisition) Acts.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 62, 63 and 64 together.
I am aware of the recent increase in house prices. I have no evidence, however, that the increases are particularly marked in the case of houses being purchased with the aid of local authority loans. The level of the maximum loan that may be made under this scheme is kept under review by me and I would propose an increase in the maximum if I thought a solution of the problem lay in that direction. However, from inquiries I have made I consider that the main difficulty lies not in the operation of the limit of £2,250, fixed last June, but in the disparity in the price of houses and their value as determined by housing authorities. While there may be scope for a more liberal attitude by some housing authorities in assessing valuations for loan purposes, I have no power to compel them to increase valuations. The law, in fact, requires that they satisfy themselves that the value of the ownership of a house is sufficient to provide adequate security for the loan.
House prices reflect the trend of conditions, costs and wages in the building industry generally and the interaction of supply and demand. Deputies will be aware of the action of the Minister for Industry and Commerce in regard to certain recent increases. To ensure that the supply of houses more nearly equates to the demand the Government intend, as announced in the recent White Paper, that output should virtually double by 1970 or as soon as the resources of the building industry permit.
The attainment of this target will present difficulties and for this reason I have been devoting much attention to the possibility of using new methods and techniques including industrialised building and rationalised traditional building.
I have also on many occasions strongly adovcated the provision by housing authorities of sites for private housing development. This would help to meet the target and secure significant economies.
The Minister indicates that he hopes to see an improvement in about five years time. Is he aware that in the meantime the average price being charged for houses of the small dwelling type is £3,800, which makes it absolutely impossible for young people to avail of the facilities which were formerly available under the Small Dwellings (Acquisition) Act? Some steps by him are necessary to stop this racket in house prices which exists at present.
I do not fully agree that these houses can only be acquired at £3,800 but at the same time I realise that the price of houses is beyond the reach of many who now want to purchase them. While one may have all sorts of investigations, I think the real answer to the problem is the one of trying to make the supply of houses more equal to the demand. We should try to do that by every means possible and that is the only real answer to the situation in which housing prices may be too high.
Would the raising of the limit not help people to secure houses?
The danger of that is that it would make available a greater number of people to outbid each other to their own disadvantage. The records do not show that the raising of the upper limit of the loan would help to solve the problem.
Is there any possibility that the Minister could come to some agreement with the building industry to establish a system of priorities whereby this type of house would have priority over the luxury type of house?
There is the danger that, if you establish a system of priorities for one type of house as against another, you would be accused of advocating the limitation of building. I do not know that this is the answer to the problem.
