Seán Haughey
Question:297 Mr. Haughey asked the Minister for the Environment and Local Government the measures he is taking to reduce the rate of increase in house prices; and if he will make a statement on the matter. [18089/00]
Written Answers. - House Prices.
One of the key objectives of the Government's housing strategy is to moderate house price increases and restore balance to the housing market. To this end, the Government has implemented a wide range of measures to boost housing output, remove infrastructural and planning constraints on residential development and improve affordability for first-time buyers and lower income households. Earlier this year, I commissioned Peter Bacon and Associates to review developments in the housing market and to make recommendations for action required to bring supply more in line with demand and improve housing affordability, especially for first-time buyers. In parallel with this study, my Department reviewed the range of social and affordable housing programmes.
Following consideration of the consultants' findings and the review, the Government approved a comprehensive package of measures – Action on Housing – which was launched on 15 June, copies of which have been circulated to Deputies.
My Department's latest house price data for the March quarter 2000 were published on 26 June. Nationally, new house prices rose by 1.6% on the December 1999 quarter average, while second-hand house prices were down 0.3% over the same period. The March quarter figures for Dublin are showing reductions of 1.1% and 2.7% in the average prices for both new and second-hand homes respectively.
As the measures undertaken to maximise supply increasingly take effect and reinforce the progress made to date, there are good prospects that house price trends will moderate further in the coming months.