Vol. 507 No. 4
179 Mr. Deenihan asked the Minister for the Environment and Local Government the additional measures, if any, he will take to ensure that there is a sufficient supply of affordable houses in view of the lack of success of the measures taken in the Finance (No. 2) Act, 1998, to control the price of houses; and if he will make a statement on the matter. [16116/99]
Increasing housing supply is the key element of the Government's strategy to stabilise the housing market. Measures such as the serviced land initiative, the provision of temporary treatment facilities and the promotion of more sustainable residential densities are all contributing to the acceleration of housing output and will help to underpin continued growth in housing output. The increase of more than 20 per cent in overall housing output in the first four months of 1999 compared to the same period last year represents a positive response to the Government's actions.
Ensuring the delivery of more affordable house types, with better design and high quality, are essential elements of the Government's strategy on affordability. The recently launched local authority affordable housing scheme involves the provision of additional new houses for low income house purchasers at prices below what is currently available in the market. I am aware of proposals, some ready to commence construction, in a number of areas including Dublin, Cork, Galway, Meath, Mayo, Wexford, Westmeath and Wicklow. Measures to promote a better mix of affordable type units in new developments are also being pursued, and this objective is also being examined in the context of the forthcoming planning and development Bill.
The provisions of the Finance (No. 2) Act, 1998 have had beneficial effects on the housing market. Following withdrawal of tax incentives for investment in residential property investors are no longer pricing first-time buyers out of the starter home market. As a result of significant reductions in stamp duty levels effected by the Act, increasing numbers of second-hand houses have been coming on the market.
There is a general consensus that Government action in relation to the housing market has, and will continue to have, very positive effects. House price statistics for the March quarter of 1999 are encouraging. Significantly, for the second quarter in succession, there has been little change in the average price of second-hand houses in Dublin, which has tended to be a leading market indicator in recent years. This positive trend of moderating house price increases is also reflected in other house price indices produced by mortgage lenders and others.
