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Dáil Éireann debate -
Thursday, 11 Jun 1998

Vol. 492 No. 3

Written Answers. - House Prices.

Pat Rabbitte

Question:

31 Mr. Rabbitte asked the Minister for the Environment and Local Government the discussions, if any, he has had with the Irish Home Builders Association, as promised in Dáil Éireann on 12 May 1998, arising from the case where a builder sought to increase the price of a house by £36,000, or 28 per cent, to a couple who believed they had a valid agreement; if so, the outcome of these discussions; the plans, if any, he has to deal with the practice of gazumping by some builders; and if he will make a statement on the matter. [13774/98]

The consultants' report An Economic Assessment of Recent House Price Developments recommended a written voluntary code of practice as the most effective means of limiting undesirable practices, such as gazumping, by some house builders and suggested that the professional representative body of home builders could play a positive role in this regard. Arising from this, the matter has been formally raised with the Irish Home Builders Association and I am glad to say that the association has responded positively by confirming that they have now agreed to establish a voluntary code of practice.

The measures which have been taken to dampen house price increases, and to remove distortions in the housing market, as set out in the Government's Action on House Prices, will also help to remove the conditions in which practices such as gazumping can take place.

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