Dáil Éireann Debate, Wednesday - 2 June 2004
17 Mr. Allen asked the Minister for the Environment, Heritage and Local Government the position regarding the commitment made in Sustaining Progress that 10,000 houses would be constructed during the term of the programme. [16452/04]
View answer
The affordable housing initiative under the Sustaining Progress partnership agreement is designed to meet the needs of persons currently priced out of the housing market. In response, the Government has committed to an ambitious scale of delivery of affordable housing through this initiative and the provisions of Part V of the Planning and Development Act 2000, as amended.
Considerable progress has been made on this initiative. First, the identification of sites for the initiative last July and December has been a critical step in ensuring early mobilisation of affordable housing for the initiative. There are now 24 individual projects on the lands identified to date for the initiative. Together with affordable housing coming through Part V arrangements, the sites so far identified have the potential to deliver 6,100 housing units. The fact that these sites are being released by both local authorities and a range of other State authorities indicates the broad commitment at Government level to facilitate the earliest delivery of housing at affordable prices.
Second, working with the parties to the pay agreement we have developed a delivery model which builds upon the existing expertise of local authorities, while at the same time ensuring that there is no impact on general Government finances, as this is one of the parameters set by the agreement. The housing will, therefore, be delivered through arrangements between local authorities and the private sector. Third, we have agreed, in principle, eligibility criteria with the parties to the pay agreement subject to further discussions on the detail.
The first affordable housing initiative project on State or local authority lands commenced in April on the site in Finglas Road and will deliver 150 plus affordable residential units. The timescale for delivery and the precise number of units to be delivered on each of the other sites is being determined in planning the projects. There are 24 projects involved, and they vary in terms of key site characteristics such as zoning status and servicing. Allowance must also be factored in for the procurement of specific developers to deliver the projects through competitive tendering and for obtaining planning permission. These processes, while involving a time element, are necessary to ensure the effective delivery of housing and the creation of housing in good quality environments. We will parallel activities as necessary to ensure early delivery of units.
The contact group on the affordable housing initiative, which is chaired by the Department of the Taoiseach, and comprises representatives of my Department and the Department of Finance and the Central Statistics Office plays an important role in ensuring the effective implementation of the initiative. Its work includes overseeing the effective and early implementation of the projects already identified, addressing any policy issues arising in implementing the initiative within the parameters of the agreement and continuing with the process of identifying State lands for use in the initiative. The services of Mr. Des Geraghty, former President of SIPTU, have also been engaged to assist with the initiative. Furthermore, an implementation team within my own Department and project managers at local level are all working to ensure the success of the initiative.
Considerable work has been done to date on the initiative, the fruits of which will emerge during this year and into the future as projects are brought to the market, and further work on implementing the initiative is progressing as a priority. This is firm evidence of the Government's determination to making measurable progress in the implementation of the initiative. We will also work to ensure that the output from all affordable housing schemes is maximised while ensuring the continuation of measures to maintain the overall supply of new houses.
18 Mr. M. Higgins asked the Minister for the Environment, Heritage and Local Government the action he intends to take arising from his Department’s annual housing statistics bulletin which showed that the price for new and second hand houses was rising at about eight times the rate of inflation and that house buyers were forced to borrow €17 billion in 2003 to finance the purchase of housing; the steps he intends to take to ensure that families can have access to affordable housing; and if he will make a statement on the matter. [16499/04]
View answer33 Ms Burton asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the recent Permanent TSB housing survey which showed that the cost of new houses was rising by 12.9% per annum; the steps he intends to take to ensure that families can afford housing; and if he will make a statement on the matter. [16498/04]
View answer60 Mr. Broughan asked the Minister for the Environment, Heritage and Local Government to state in respect of 1997 and the latest year for which figures are available; the average cost of a new house in Dublin, a second hand house in Dublin; a new house outside of Dublin, a second hand house outside of Dublin; the plans he has to ensure availability of affordable housing, in view of the recent surveys showing that house prices are continuing to rise; if he will give his estimate of the likely increase in house prices during 2004; and if he will make a statement on the matter. [16497/04]
View answer
I propose to take Questions Nos. 18, 33 and 60 together.
The unprecedented demand for housing, fuelled mainly by rapid economic growth and demographic changes, has been the major driver of house price increases in recent years. The Government's strategy is to increase housing supply to meet demand and to improve affordability, particularly for first time buyers, and in this way to seek to bring moderation to house price increases.
There is clear evidence that the measures introduced by this Government to boost supply, including significant investment in infrastructure, improving planning capacity and promoting increased residential densities, are having effect. The year 2003 was the ninth record year for house completions, with 68,819 units completed, an increase in output of 19.3% on 2002 and an increase of 10.5% in output in the greater Dublin area during the same period. Ireland is building at the fastest rate in Europe — 17 houses per 1,000 population, which is an outstanding achievement. The investment in the servicing of land has led to a strong stock of land available for residential development.
While the rate of house price increases is still problematic, this has moderated considerably since the late 1990's when price increases peaked at 40% per annum in 1998. Detailed information on house prices are set out in my Department's housing statistics bulletin, copies of which are available in the Oireachtas Library. A number of market commentators, including the Central Bank, are now predicting greater balance in the housing market over the next few years, as increased supply has a dampening effect on house prices. Indicative data available to the Department shows that first-time buyers continue to have a significant presence in the housing market. The Government will continue to focus on measures to maintain a high level of housing supply, and the prospects for another good year in the housing sector are positive, as trends in house completions have continued to increase in the early part of this year.
At the same time, the Government is concerned to ensure that the broad spectrum of housing needs is met. Almost €5.32 billion was spent in the first four years of the NDP on social and affordable housing measures, which is more than 10% ahead of the forecast for the period, reflecting the strong commitment of the Government to continue to meet the needs of low income groups and those with social and special housing needs. The year 2003 had the highest level of housing provision under the full range of social and affordable housing measures for over 15 years, the needs of over 13,600 households were met compared to almost 8,500 in 1998, ensuring that the needs of low income groups and those with social and special housing needs are addressed.
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 and we will continue to monitor and review housing developments and policies as necessary.
