I refer to the reply to Question No. 47 of 10 October 2002. My Department has since ascertained in discussions with the Small Firms Association that the latter's estimates for the increase in the cost of building houses may be based on the national house building cost index, published in my Department's housing statistics bulletin based on material supplied by Dublin City Council. However, the same general reservations as indicated in reply to Question No. 47 would apply to the ability of this index fully to reflect market conditions. As already stated, the rate of house price increase in recent years, resulting from strong economic and demographic growth, has been of serious concern to the Government and has led to a range of responses which have had a positive effect in increasing housing output and moderating house price increases. Average year-on-year house price increases have been reduced from a peak of around 40% per annum in 1998 to much more moderate levels currently. Last year was the seventh successive year of record housing output with a total of 52,602 units completed.
