Dáil Éireann debate -
Tuesday, 1 Apr 2003

Vol. 564 No. 1

Written Answers - Housing Waiting Lists.

Bernard J. Durkan

Question:

123 Mr. Durkan asked the Minister for the Environment and Local Government the progress he has made towards addressing serious housing problems; when the needs of those on local authority housing lists are likely to be met; and if he will make a statement on the matter. [8807/03]

Bernard J. Durkan

Question:

324 Mr. Durkan asked the Minister for the Environment and Local Government the reason housing policy has failed to meet the needs of those currently in need of a new home; and if he will make a statement on the matter. [9026/03]

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

I propose to take Questions Nos. 123 and 324 together.

The Government has been concerned 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 2002 was 57,695 units, an increase of 9.7% on 2001 and the eighth consecutive year of record housing output. The effects of this increased output are being reflected in moderating house price trends. Average year on year house price increases have been reduced from a peak of around 40% per annum in 1998 to more moderate levels currently. When combined with Government measures and other factors, including high levels of economic growth, lower tax levels, increased disposable incomes, increased employment, lower mortgage interest rates and low inflation, this moderation in house price increases has impacted positively on housing affordability.

Our approach has included the major expansion of both the local authority and voluntary housing programmes. Last year it is estimated that more than 12,600 units of social and affordable housing were provided compared to just short of 8,700 units in 2000. Local authority housing output of more than 5,000 units was achieved in 2002 and the voluntary housing sector continued to play an increasingly significant role in the provision of social housing with output of close to 1,400 units, the highest level ever recorded. Activity is also increasing significantly under the affordable housing and shared ownership schemes. An estimated 860 affordable housing units were built in 2002, about three times the output in 2001, and some 1,675 households benefited under the shared ownership scheme.

Demographic changes continue to drive the demand for housing, including social housing. The Government therefore remains committed to continuing with measures to boost the supply of housing and in this way seek to bring moderation to the rate of house price increases and to assisting low income groups and those with social housing needs by means of the range of targeted social and affordable housing programmes. The total capital funding for housing this year, at €1.7 billion is up almost 7% on the amount provided in 2002. It is anticipated that this funding will enable the needs of about 12,000 households to be met this year. The provisions under Part V of the Planning and Development Act 2000, as amended, will assist in the delivery of social and affordable housing and the housing initiative included in the new national partnership agreement Sustaining Progress also seeks to increase the supply of affordable housing.

The current level of public investment in housing is significant and the need to ensure that we are making best use of the available resources to meet housing needs, is reflected in the new partnership agreement Sustaining Progress which provides for a review of the effectiveness of programmes designed to assist low-income groups, including those with social housing needs and special housing needs, such as elderly, disabled and homeless persons and Travellers. The Government will continue monitor housing developments and review policies as necessary to ensure that the demand for housing is met in a sustainable manner.