Bernard J. Durkan
Question:31 Mr. Durkan asked the Minister for the Environment and Local Government the way in which he proposes to address the ever increasing housing crisis; and if he will make a statement on the matter. [17464/02]
Written Answers. - Housing Policy.
Bernard Allen
Question:349 Mr. Allen asked the Minister for the Environment and Local Government his plans to change Government housing policy having regard to the continuing inability of families to afford their own homes, the low number of local auth ority dwellings being constructed and the general downturn in housing construction; and if he will make a statement on the matter. [17756/02]
I propose to take Questions Nos. 31 and 349 together.
The Government's strategy has been to increase housing supply to meet demand and to improve affordability, particularly for first time purchasers. There is clear evidence that this strategy is proving effective. Total new housing output in 2001 was over 52,600 units, an increase of 5.6% on 2000 and the seventh consecutive year of record housing output. Prospects for housing output in 2002 are again good, with output up 5.2% in the first six months of the year compared to the same period last year.
The effects of this increased output are being reflected in moderating house price trends. House price increases have been reduced from a peak of around 40% per annum in 1998 to approximately 5-7% per annum currently. There is also firm evidence that first time buyers are gaining an increasing share of the new housing market with first time buyer grant applications increasing by over 14% in the first nine months of 2002 compared with the same period in 2001.
The combination of Government measures and other factors have impacted positively on housing affordability, including high levels of economic growth, lower tax levels, increased disposable incomes, increased employment, lower mortgage interest rates, low inflation and moderating house price trends assisted by an increased supply of properties on the market following years of record housing output. Significant progress has been made in delivering NDP social housing targets with local authority housing output of over 5,000 units in 2001, which was the highest level in 15 years. Local authorities built 1,468 new houses in the first six months of this year, an increase of 13% on the corresponding period in 2001. The voluntary housing sector is playing an increasingly significant role in the provision of social housing with output in 2001 of some 1,250 units, the highest level ever recorded.
The Government is also committed to implementing major reforms in the private rented residential sector, arising from the recommendations of the report of the commission on the private rented residential sector. The private residential tenancies board was established on an ad hoc basis last October to deal with disputes between landlords and tenants. The drafting of the legislation required to set up the board on a statutory basis and implement other commission recommendations, such as improving security of tenure for tenants, is progressing. These reforms should facilitate the development of a better managed and more professional private rented sector.
Finally, as required under the Planning and Development Act, 2000, planning authorities have prepared housing strategies which identify the overall need for housing within the area covered by the strategy, including the need for social and affordable housing. The Government will continue to monitor housing developments and review policies as necessary to ensure that the demand for housing is met in a sustainable way.