Dáil Éireann debate -
Tuesday, 14 Oct 2003

Vol. 572 No. 3

Written Answers. - House Prices.

Arthur Morgan

Question:

493 Mr. Morgan asked the Minister for the Environment Heritage and Local Government his views on the fact that the failure of the Government to allocate a full Cabinet position for housing has contributed to the failure of the Government to, in any way, impact on the escalating housing problem; and if he will make a statement on the matter. [22810/03]

Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern)

The Government affords a high priority to housing issues as evidenced by the range of policies and measures employed by my Department and other public agencies involved to ensure that housing needs are appropriately met.

We have placed a strong emphasis on increasing housing supply to meet demand, particularly for first-time buyers, against a background of unprecedented demand for housing, fuelled mainly by rapid economic growth and demographic changes.

The measures introduced by this Government to boost supply such as significant investment in infrastructure, removing planning constraints, and promoting the increased residential densities are having effect. In 2002, there was the eighth successive year of record house completion, with 57,695 units completed, an increase in output of 9.7% on 2001, and an over 30% increase in the housing output in the Dublin area. Ireland is now building housing units at the fastest rate in Europe – close to 15 units per 1,000 population last year, which is an outstanding achievement.

This positive trend in supply has continued into this year, with statistics showing that overall house completion for the first six months were up 16.5% on the same period last year, completions in the greater Dublin area were up 10.6% and completions in Dublin were up 13.8%.

House price increases and the impact of these on affordability are a matter of continuing concern. While the rate of house price increases is still problematic, this has moderated considerably since the late 1990s, when price increases peaked at 40% per annum in 1998. In order to address problems associated with increases in price levels, the Government has worked to ensure the continuing enhancement of supply.

At the same time, the Government is concerned to ensure that the broad spectrum of housing needs is met. Almost €3.8 billion was spent in the first three years of the national development plan on social and affordable housing measures, reflecting the strong commitment of the Government to meeting needs of low income groups and those with social and special housing needs.

The Government is committed to continuing with measures to boost the supply of housing and ensuring that the demand for housing is met in a sustainable manner. We will continue to monitor and review housing developments and policies as necessary.