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House Prices.

Dáil Éireann Debate, Tuesday - 13 June 2006

Tuesday, 13 June 2006

Questions (25, 26, 27, 28, 29, 30)

Ivor Callely

Question:

61 Mr. Callely asked the Minister for the Environment, Heritage and Local Government if he is satisfied regarding the housing market, especially in relation to house prices for new and second hand houses; the measures that have been put in place to stabilise the market; the expected long-term market indicators; and if he will make a statement on the matter. [22316/06]

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Olwyn Enright

Question:

69 Ms Enright asked the Minister for the Environment, Heritage and Local Government if he will make a statement on the recent report from TSB-ESRI house price index that house price growth is at a six year high; and if he will make a statement on the matter. [22529/06]

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Michael Noonan

Question:

110 Mr. Noonan asked the Minister for the Environment, Heritage and Local Government the way in which he will tackle the issue of affordability of housing for first time purchasers; and if he will make a statement on the matter. [22531/06]

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Martin Ferris

Question:

130 Mr. Ferris asked the Minister for the Environment, Heritage and Local Government the actions he is taking to curtail ongoing house price increases which according to the figures released by the ESRI and Permanent TSB rose by 5% from January to April 2006. [22481/06]

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Eamon Gilmore

Question:

142 Mr. Gilmore asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that the rise in house prices here is contributing to a new type of poverty whereby those struggling to accumulate a deposit for a home often find that they are unable to furnish it; his views on the recent findings of the Permanent TSB House Price Index that house prices have risen faster since the beginning of 2006 than at any other time since 2000; if his attention has further been drawn to the fact that such a rise was happening; the steps he intends to take in light of the continuing surge in house prices; and if he will make a statement on the matter. [22471/06]

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Ivor Callely

Question:

420 Mr. Callely asked the Minister for the Environment, Heritage and Local Government the consideration, reports or recommendations his Department has received to introduce measures to assist first time house buyers; and if he will make a statement on the matter. [22319/06]

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Written answers

I propose to take Questions Nos. 61, 69, 110, 130, 142 and 420 together.

I refer to the reply to Questions Nos. 53 and 55 on today's Order Paper. As indicated in that reply, the Government have taken action on a wide front to maximise access to home ownership, particularly through measures to promote adequate supply of housing to meet very strong demand. In particular, we have supported first time buyers through a range of targeted measures, notably affordable housing schemes and stamp duty reduction. Reduced stamp duty yielded significant savings for first time buyers and has been particularly beneficial for people saving for a deposit.

It is not possible for me to comment in detail on the Permanent TSB house price index, which is based on Permanent TSB's own lending transactions. However, the figures published by my Department showing the actual overall average house prices for the whole market, based on returns from all lending institutions, do not show the rate of price growth at a six year high.

The Department's figures indicate that, with the exception of a period between the third quarter of 2001 and the second quarter of 2002, the rate of increase in new house prices nationally at the last quarter of 2005 was lower than at any time since 1996. The rate of increase for second hand houses at the last quarter of 2005 was also lower than the rate during most of the period between 1996 and 2004.

Government policy in this area has been informed by a range of reports and recommendations, including three reports on the housing market by Peter Bacon and Associates in the period 1998 to 2000, The National Economic and Social Council report on the housing sector in 2004 and the Sustaining Progress Agreement, in which the Affordable Housing Initiative was included as a special initiative. In addition, the Affordable Homes Partnership in 2005 was established following a progress report on the implementation of the Affordable Housing Initiative by Mr Des Geraghty. My Department has regard on an ongoing basis to relevant material in reports by various public and private sector bodies. It will continue to monitor closely developments and views so as to provide effective input to policy in relation to housing.

Questions No. 62 answered with QuestionNo. 60.
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