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.