Vol. 494 No. 4
332 Mr. Gormley asked the Minister for the Environment and Local Government his views on whether current trends in the housing market indicate that private home ownership will not be a realistic option for most sectors of society; the proposals, if any, he has to foster support and encouragement and facilitate alternative strategies which would provide access to long-term tenure in respect of housing; and if he will make a statement on the matter. [18272/98]
: The Government's commitment to the ideal of home ownership is affirmed in An Action Programme for the Millennium and is strongly reflected in the Government's Action on House Prices, which was published in prompt response to the Bacon report. Measures to improve the position of lower income house buyers form a major element of the package, including improvements in the local auhority shared ownership scheme, removal of fiscal incentives to investors who were pricing first time buyers out of the market, significant reductions in stamp duty rates particularly at the lower house price levels, and initiatives to boost housing supply, such as the provision of special Exchequer funding for water, sewerage and roads infrastructure to open up additional land for housing.
The full effect of many of these measures, particularly those designed to promote housing supply, will only be seen in the medium term. However, positive effects of the Government's Action on House Prices have already been reported by market sources, including signs of some easing of the house prices situation, first time buyers reclaiming the starter home market and an increase in the number of second hand houses coming on the market as a result of stamp duty reductions. Housing output in 1998 is set to exceed last year's record level. However, I will be keeping developments in the housing market under review to ensure that we continue to make progress in meeting the Government's housing objectives as set out in An Action Programme for the Millennium and that home ownership remains an option for those who reasonably aspire to it.
