asked the Minister for the Environment if it is intended to introduce any controls on the increasing prices of houses.
Ceisteanna—Questions. Oral Answers. - House Price Control.
6.
In February 1973 a form of control was introduced under section 35 of the Housing Act, 1966, in relation to the prices of new grant-type private houses in groups of four or more being provided for sale. This control is operated by way of the issue of a certificate by my Department in cases where the price proposed to be charged appears to be reasonable. Concurrent with the introduction of the £1,000 new house grant in July 1977, this control was extended to cover grant-type houses and flats provided for sale. In August 1978 the scope of the controls was again extended to cover a wider range of houses for which building society loans were approved, including non-grant-type houses. A new housing Bill, which I propose to circulate to Deputies in the near future, will contain measures to strengthen the present statutory basis for the control of prices of new private houses and flats being provided for sale.
Regarding the reference in the question to the "increasing" price of houses, the Deputy will be aware that statistics of the average gross prices of new houses for which loans are approved by the main lending agencies are contained in my Department's quarterly bulletin of housing statistics. The notes to the appropriate tables indicate that the houses concerned are not necessarily comparable from quarter to quarter or from area to area. Subject to this reservation, the latest edition of the bulletin shows that the average quarterly change in the gross, price of new houses was plus 11.7 per cent in January-March 1978, plus 8.4 per cent in April-June 1978, plus 3.4 per cent in the third quarter of 1978 and minus 0.2 per cent in the last quarter.
It would be impractical to regualte the prices of previously-occupied houses. These prices are determined by market conditions generally and prices will vary considerably depending on the location, the amenities offered, the state of repair and the general potential of the house.
The Department's quarterly bulletin of housing statistics also shows that the average gross prices of previously-occupied houses for which loans were approved by the main lending agencies increased by 20.8 per cent between the last quarters of 1977 and 1978, respectively, and decreased by 3.4 per cent over the last three months of 1978.
Because of the recent staggering escalation in the price of houses and the increase in loan charges, would the Minister not agree that many young people are having to repay a disproportionate amount of their incomes in this way, and that existing attempts to get some stability in house prices has failed? When the Minister talks about market condïtïons, ïs ït not due to the tact that there is shortage of local authority houses and that young people are pushed into buying private houses?
The Deputy's question relates to controls in relation to house prices. He is now making a speech about the reasons for prices having risen.
I do not agree that the gross price of new houses has escalated to the degree suggested by the Deputy. As I stated in my reply, the increase was 11.7 per cent in the January to March period, 8.4 per cent in the April to June period——
(Interruptions.)
Does the Minister not accept that new house prices have gone up by about 40 per cent since the Government came into power?
He said that yesterday.
The average quarterly increase in new house prices, as published in the bulletin, from July 1977 to December 1978, was 6.3 per cent, and during the period April 1973 to July 1977, the increase was 6.6 per cent.
The Minister is confusing me. Do the figures the Minister has given add up to an increase of almost 40 per cent in the price of new houses since the present administration came to power?
The average increase has been 24 per cent, whereas the highest ever increase was about 37 per cent during the period of the last Government.
Was the increase almost 40 per cent in the past 18 months?
That is not so. The average was 24 per cent.
The Minister's figure today differs from that which he gave yesterday. Is he suggesting the increase has been only 24 per cent in the last 18 months?
I gave the increases during the last 12 months and I also compared the increases from July 1977 to December 1978 with the figures between April 1973 and July 1977.
The information now given by the Minister is in direct conflict with the answer given yesterday. One figure is therefore incorrect. In view of the serious nature of this matter I should like to raise it on the Adjournment tonight.
I shall communicate with the Deputy.
The Minister referred to forthcoming legislation. Do the Minister and the Department propose to link the cost of building land with the CRV? Has the cost of building land not been the most inflationary factor among all the components in new house price increases?
I cannot say what will be in the new legislation. It will be published shortly and the House will be given a full opportunity to discuss it.
I realise we cannot anticipate legislation, but will the Minister accept that the cost of building land has been the most inflationary component in the increased price of housing in the past 12 months?
It has been one of the factors, but not the only one. Many other factors have been involved.
(Cavan-Monaghan): Does the Minister agree that a reply or replies given by the Minister recently showed clearly that the house building cost index has been increasing in the past few months and that in January it increased by almost 100 per cent over the previous month?
I have not seen the January figures. During the previous quarter there was a drop—it was minus 0.2 per cent.
(Cavan-Monaghan): In view of information given to me recently in reply to a parliamentary question, will the Minister deny there was a substantial increase in January and February?
I have not got the figures.