With the permission of the Ceann Comhairle, I propose to take Questions Nos. 31 and 32 together.
I am aware of the figures quoted by the Deputies which have been extracted from the recently published NESC report on economic and social policy.
The measures taken by the Government since July 1977 to promote owner-occupation of new houses and in particular the steps taken to assist first-time owner-occupiers have largely been successful. This is reflected in the fact that the number of non-local authority house completions has increased from 16,700 in 1976 to 20,300 last year. The corresponding figure for this year is likely to be a record. The number of grants paid for first-time owner-occupiers increased from 7,200 in 1978 to 8,100 last year. The number of grants paid during the first 11 months of this year showed an increase of 1,000 on the corresponding period last year. The proportion of first-time owner-occupiers of new houses obtaining house purchase loans from the main lending agencies increased from 62 per cent in 1978 to 66 per cent during the first nine months of this year.
Apart from the £1,000 grant, the Government have introduced a number of financial incentives during the past three years to promote owner-occupation of new houses, as follows:—
(1) The SDA loan and income limits were increased on three occasions by a total of 166 per cent and 134 per cent, respectively;
(2) A temporary subsidy was introduced this year which enabled building societies to increase their investment rates and let mortgage rates stand at 14.15 per cent. With the general downward movement of interest rates, there is now no need for the subsidy;
(3) The amount of personal interest, including house mortgage interest, qualifying for income tax relief has been increased from £2,000 to £4,800;
(4) Since 1979, a grant is available to meet portion of the administrative costs of the National Association of Building Cooperatives;
(5) The subsidisable cost limit on each housing site provided by local authorities for modestly-priced private housing was increased from £900 to £1,500.
In contrast, the number of new house grants paid in 1977 was less than half the total paid in 1973. This was due mainly to the introduction by the Coalition Government in 1976 of an income and valuation limit for the purpose of qualifying for the grant. Furthermore, the following examples show the lack of concern of the Coalition Government as regards the owner-occupation of new houses:—
(a) The number of non-local authority houses completed declined from 18,600 in 1973 to 16,700 in 1976;
(b) The SDA loan and income limits remained static between September 1973 and July 1977 despite the fact that house prices and earnings more than doubled during this period;
(c) During their four years in office, they never introduced any incentive to promote non-profit housing activity;
(d) The subsidisable cost limit on sites provided by local authorities for private housing remained unchanged between 1972 and 1977.
The adequacy of the measures necessary to promote owner-occupation of new houses generally and assist the first-time owner-occupier in particular is being kept under review by the present Government.