Dáil Éireann debate -
Tuesday, 1 Apr 2003

Vol. 564 No. 1

Written Answers - Housing Policy.

Seán Crowe

Question:

283 Mr. Crowe asked the Minister for the Environment and Local Government if, in view of the large number of people investing in housing accommodation, particularly in Dublin, he will make a statement on the effect this is having on first-time buyers. [8710/03]

Bernard J. Durkan

Question:

326 Mr. Durkan asked the Minister for the Environment and Local Government the number of houses built in the past 12 months bought by first-time buyers; the number purchased by investors; and if he will make a statement on the matter. [9029/03]

Minister for the Environment and Local Government (Mr. Cullen)

I propose to take Questions Nos. 283 and 326 together.

The key objective of Government housing policy is to enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and, as far as possible, at the tenure of its choice. The Government has implemented a balanced range of measures to increase overall housing supply and to afford greater access to the housing market to first-time buyers. It has also tried to develop the private rented sector and to advance social and affordable housing programmes specifically targeted at low income groups and those with social housing needs.

These measures have led to record levels of housing output, with 57,695 houses completed in 2002, up almost 10% on 2001 levels, representing the eighth consecutive year of record output. Although the Department does not have a breakdown of new house completions by first-time buyers or other owner occupiers and investors, market evidence indicates that many investors returned to the housing market in 2002, thereby increasing the supply of private rented accommodation and leading to moderation in the rate of increase of private rents. This is a positive development for those seeking accommodation in the private rented sector. At the same time, indicative data available to the Department confirms that first-time buyers remained a strong presence in the housing market, representing approximately 40% of the market in 2002.

By continuing to support increased housing supply, the Government will maintain its efforts to ensure moderate price increases and improved affordability, particularly for first-time buyers. The Government supports first-time buyers through a range of targeted measures, including the increase in the mortgage tax relief available to them by over 25% in budget 2003; the extension of the period for which relief is available by a further two years and the rebalancing of stamp duty rates to favour first-time buyers. The Government remains committed to pursuing the balanced range of measures which are providing access to home ownership for large numbers of people, as well as ensuring a good supply of rented accommodation.