Dáil Éireann Debate, Tuesday - 28 September 2021
383. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage the degree to which his Department continues to monitor house price inflation; the action that is in-hand or likely to be taken to address the issue; and if he will make a statement on the matter. [46760/21]
View answerHouse price inflation is measured in the Residential Property Index compiled by the CSO which is published monthly, and covers all market purchases of houses and apartments by households. My Department reviews this data monthly, along with other market trends.
Housing 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 also shows that new dwellings completions for Quarter 2 are increasing and the effects of the periods of lockdown are alleviating. 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. Furthermore, the governance approach set out in Housing for All, including the Housing for All Delivery Group and my Department will continuously monitor and prioritise delivery of the Plan having regarding to relevant market trends including impacts on house prices, where appropriate.
