Demand for housing generally is influenced by many factors including demographic changes, economic growth, interest rates, employment and levels of real personal disposable income and, accordingly, it is not possible to quantify precisely the numbers of people in need of housing.
I have, however, appointed consultants to undertake a detailed evaluation of recent developments in the housing market, including an examination of supply and demand for housing. The study, which is being carried out by Peter Bacon and Associates in conjunction with my Department, will be completed shortly and will be considered by Government, together with a comprehensive policy response as soon as possible thereafter.
Overall demand for housing to meet the needs of all members of the community will fall to be considered by local authorities in the context of housing strategies which local authorities will be required to prepare following enactment of the Planning and Development Bill, 1999.
The Government considers that forecasts of continued strong economic growth, along with recent demographic predictions, coupled with high immigration, particularly in the key household formation age categories, and the fall in average household size all point towards continued higher demand for housing. For this reason, the national development plan provides the framework for an integrated investment strategy to facilitate the provision of 500,000 houses to meet this demand over the next ten years.
The 1999 assessment of the need for local authority housing indicated that demand for social housing has also increased with just over 39,000 households seeking local authority housing. The provision of £6 billion investment for social and affordable housing in the national development plan will ensure that the social housing needs of over 90,000 households will be met with Government assistance over the period of the plan.
