Dáil Éireann Debate, Thursday - 23 October 2014
177. Deputy Lucinda Creighton asked the Minister for the Environment, Community and Local Government his views on the increase in price for three bedroom homes in Irish towns and cities recorded by Real Estate Alliance; the steps he will take to quell the new property bubble which has emerged in urban areas; and if he will make a statement on the matter. [40817/14]
View answerI am aware that the Real Estate Alliance average house price index showed, inter alia, that the price of an average three-bed semi-detached house in Irish towns and cities rose by 17.59% in the first nine months of 2014. It would not be appropriate for me to comment on the Real Estate Alliance average house price index, which is based on its own data. In this regard, the CSO’s monthly Residential Property Price Index showed a national increase of 14.9% (25.1% for Dublin) across all property types in the twelve months to August 2014. As a result of the economic downturn in 2008, there followed a number of years of significant decline in construction activity, including housing. This very significant contraction in activity is now impacting on the supply side at a time when demand for housing is increasing.
The Government’s Construction 2020 – A Strategy for a Renewed Construction Sector, published in May 2014, aims to build a competitive, innovative, and sustainable construction sector of which the housing sector is a key element. Construction 2020 addresses the full range of relevant issues including the planning process, financing, access to mortgage finance and the construction workforce. The implementation of all the actions in Construction 2020 is a key priority for the Government in order to support the restoration of sustainable levels of construction activity, including the delivery of housing.
