asked the Minister for the Environment the percentage increase in house prices, both new and second-hand, in the Dublin area for the three monthly periods since June 1977; and if he is aware of recent statements by representatives of the Construction Industry Federation and various auctioneers as to the lack of effectiveness of the £1,000 grant scheme and the role it has had in relation to increases in the price of houses.
Written Answers. - House Prices.
70.
The percentage increases in the average gross prices of houses in the Dublin area for which loans were approved by the main lending agencies since June 1977 were 8.8 per cent in the case of new houses and 8.6 per cent for previously occupied houses in the three months ended 30 September 1977. In the following three months the increases were 2.7 per cent and 12.5 per cent respectively. Information for the quarter ended 31 March 1978 is not yet available.
Regarding the second part of the question, I have seen press reports of conflicting statements, attributed to the federation and to some auctioneers, about the effectiveness of the £1,000 grant. I do not accept the suggestion that this grant has been ineffective and that it has been responsible for the increase in house prices. In July last the scheme of house price control operated by my Department was extended to all State-aided new private houses and flats being provided for sale. The grant is payable direct to the first-time owner-occupier so that the builder does not "pocket the grant". In 1977 house prices throughout the country increased by 20 per cent, which was generally in line with increase in the average earnings of adult male workers engaged in transportable goods industries.