Dáil Éireann debate -
Thursday, 29 Jun 2000

Vol. 522 No. 4

Written Answers. - Housing Policy.

Bernard J. Durkan

Question:

55 Mr. Durkan asked the Minister for the Environment and Local Government if, having regard to the lack of impact on the housing crisis of the Bacon (1) and Bacon (2) reports, he envisages major improvement in the housing situation with particular reference to the ability to meet demands in both public and the private sector; and if he will make a statement on the matter. [18797/00]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

Since coming into office, 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. While the full impact of some of the measures will be realised in the medium term, there is clear evidence both from the most recent analysis of the housing situation and from the latest housing trends that the Government's actions over the last few years have made a significant impact in the face of strongly rising demand for housing.

Housing output has risen by more than 20% since 1997, with over 46,500 houses built in 1999, and completions trends so far this year also point to further record output. Furthermore, my Department's latest house price data for the March Quarter 2000 reveal that new house prices rose by just 1.6% nationally 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. Year-on-year house price increases – March 2000 on March 1999 prices – are also significantly lower than in previous quarters and well below the peaks reached in 1998.

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 conjunction with the consultancy study, my Department also 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 and copies of which have been circulated to Deputies.

The Government is committing substantial additional resources to housing and housing related infrastructural development, over and above that which has been committed in the national development plan and the Programme for Prosperity and Fairness. These further measures provide a comprehensive and coherent response to growing housing need.