Dáil Éireann Debate, Tuesday - 25 October 2005
209 Caoimhghín Ó Caoláin asked the Minister for the Environment, Heritage and Local Government his views on whether competition from buyers of second homes is a contributory factor to house price increases. [30314/05]
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The unprecedented demand for housing consequent of rapid economic growth and demographic changes has been the major driver of house price increases in recent years. While precise information is not available, it is clear there has been significant activity over this period by investors and owners of second properties. This is to be expected in a growing economy. Although at different times and locations this may have an impact on prices, there can be gains in terms of the supply of private rented accommodation, tourist accommodation and revitalisation of areas.
Against this background, the Government's strategy is to increase housing supply to meet the diverse demand. A particular focus of attention is on measures to improve affordability and access to housing for new emerging households. Focusing on sustaining supply at levels to meet demand is the key objective of policy and in this way we seek to bring moderation to house price increases. The success of these measures is demonstrated by the substantial increase in output, which has doubled in the past seven years with house prices having moderated from their high levels in the late 1990s.
