Jim O'Keeffe
Question:56 Mr. J. O'Keeffe asked the Minister for Finance the financial measures, if any, he has to dampen down house price inflation; and his views on the ESRI report on this issue. [19557/97]
Written Answers. - Housing Market.
House prices are determined on the open market, and hence not subject to any official controls. Nonetheless, my colleague, the Minister for the Environment and Local Government, will be keeping the situation in the housing market under active review. He has initiated a consultancy study into the cause of the rise in house prices in recent years and the implications for the future, and the consultants are expected to report in the spring. In addition, his recent announcement of a new £15 million fund to assist local authorities increase the supply of local land, will help to calm the housing market.
The ESRI has not published any specific report on house price inflation. The ESRI did make some suggestions in their April 1997Quarterly Economic Commentary such as the introduction of tighter lending regulations. Due consideration will be given to all aspects of the house price situation in the context of the aforementioned consultancy study.