The UK housing market is not analogous to ours. However, my Department monitors trends in the UK that are of relevance to here.
The Government considers that supply is the key to addressing pressures on the housing market. Its focus has been on maintaining a high level of supply to meet a strong demand and thus moderate the rate of increase in house prices. Clear evidence proves that the strategy is effective. Last year was the ninth successive year of record housing output with over 68,800 house completions, an increase of almost 20% on 2002. In Ireland houses are built faster than anywhere else in Europe with 17 houses per 1,000 population. This compares to the rate in the UK where around three houses are built per 1,000 population.
The rate of house price increases is still problematic. However, it has moderated considerably since the late 1990s when price increases peaked at 40% per annum in 1998. A number of market commentators, including the Central Bank, predicts a greater balance in the housing market over the next few years as increased supply has a restraining effect on house prices.
The Government is committed to continuing with measures to boost the supply of housing. It will continue to monitor and review housing developments and policies, as necessary.
