The total housing provision, Exchequer and non-Exchequer, for 2004 of €1.885 billion represents an increase of 5.5% on this year's allocation. This increase in the overall housing programme will allow for the needs of about 12,500 households to be met through the various social and affordable housing measures, compared to 8,500 in 1998. The 2004 provision includes capital investment of over €1 billion which will allow for 5,000 starts under the main local authority programme, an increase of 500 above 2003 levels and a further 500 units to commence under area regeneration programmes. The provision will also underpin continuing progress in the voluntary and co-operative housing sector which has been increasing its contribution to the provision of social rented accommodation.
I expect that the average unit cost of a local authority house in 2004, including site cost and fees, will be in the region of €150,000. The unit cost of comparable voluntary housing type units is broadly similar. The cost of constructing social rented accommodation compares favourably with average house prices. The most recent published figures for house prices are contained in my Department's housing statistics bulletin for the June quarter of 2003, a copy of which is available in the Oireachtas Library.
Local authorities also acquire some houses in the market to supplement their construction programmes. The prices paid would be broadly similar to new build costs. The Government is also concerned, having provided additional resources for social and affordable housing programmes, to ensure that we achieve good value for money, maximise the output of units and deliver housing in a manner which creates sustainable communities. At the same time, by focusing on measures to boost overall housing supply, the Government seeks to ensure greater availability of housing, to address issues of affordability and to meet the broad range of housing needs.