Dáil Éireann Debate, Tuesday - 28 September 2021
145. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the steps he has taken to ensure that his housing policies are not inflating prices even further in view of the latest CSO report which shows that house prices have increased by 8.6% in the past 12 months; and if he will make a statement on the matter. [46015/21]
View answerHousing supply has been impacted by Covid-19. The periods of lockdown since early 2020 have reduced construction activity and placed limitations on the ability to conduct normal sales activity, and this has impacted on house prices. The considerable growth in household savings, related to the public health restrictions which reduced consumption, also seems likely to be contributing to recent price inflation.
The ongoing removal of Covid restrictions will allow for a full reopening of the housing market. CSO data regarding new dwellings completions for Quarter 2 shows that the rate of completions is increasing and the effects of the periods of lockdown are abating. Data on planning permissions and commencements are also showing a significant increase over this period.
The full opening up of the housing market and construction activity, along with the increases in supply that will be delivered by the Government’s Housing for All Plan, will ensure that housing market activity normalises, and supply increases to meet demand as the Plan is implemented.
As a matter of course in the development of housing policy or schemes, account is taken of the intended or potential impacts of the measures under consideration. Further, the governance approach set out in Housing for All will provide the mechanism to consider the sequencing and timing of the rollout of demand side measures with delivery of supply side reforms. The Housing for All Delivery Group and my Department will monitor and prioritise delivery and sequencing of actions, having regarding to relevant market trends including impacts on house prices, where appropriate.
