Vol. 495 No. 2
69 Mr. Howlin asked the Minister for Finance his views on whether the measures introduced in the Finance (No. 2) Act, 1998, to deal with the housing emergency have had the intended effect; and if he will make a statement on the matter. [19500/98]
The Government's response to the Bacon report consisted of a three pronged approach, measures to increase the potential supply of housing, measures to dampen excessive investor demand and measures to improve the position of prospective first-time buyers. The tax measures introduced are, in many cases, lagged in their effect and many of the issues relating to the supply of housing are of an infrastructural nature and may, in some cases, take years to come on stream.
According to the Irish Permanent Index of House Prices produced in conjunction with the ESRI, the rate of growth in house prices has slowed down since June 1998. Anecdotal evidence would also suggest that new housing estates, especially in suburban areas, traditionally seen as the preserve of first-time buyers, are over-whelmingly being sold to owner occupiers in recent months. These properties had been the subject of high investor demand prior to the Finance (No. 2) Act.
