Question:
47 Mr. Hayes asked the Minister for Finance if he has assessed the effectiveness of the measures he introduced arising from the Bacon report; and if he will make a statement on the matter. [13645/98]
Written Answers. - House Prices.
The proposals contained in the Finance (No. 2) Act, 1998, are designed to restore a balance to the housing sector — a balance between supply and demand, between investors and owner occupiers and between tax concessions and removal of reliefs. As I said during the recent Dáil debates on this issue, what these measures are trying to achieve is a change in the balance in the market. The overall policy goals are to increase the supply of serviced land, to reduce excess investor demand and to assist ordinary house purchasers, thus defusing the house price spiral and increasing the affordability of housing.
It is too early to measure the effectiveness of the total Government package. However, I take heart from recent media reports of residential units coming to the market and being purchased almost exclusively by owner occupiers, where in the past a substantial percentage would have been sold to investors.
Finally, the effectiveness of the Government package will have to be gauged by reference to the policy goals mentioned above and as I indicated on Committee Stage of the Bill the matter will be kept under review.