Dáil Éireann Debate, Tuesday - 28 September 2021
395. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage if he will take action to discourage house price increases that currently make it difficult or impossible for first-time house buyers to build or acquire a home of their own; and if he will make a statement on the matter. [46772/21]
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 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. In particular, a range of measures are being implemented which will deliver on the Programme for Government commitment to put affordability at the heart of the housing system. These will increase the supply of affordable homes through delivering affordable homes on local authority lands; cost rental; the 'first home' affordable purchase scheme; and expansion of Part V planning requirements to increase the 10% contribution requirement to 20% for social and affordable housing.
These measures are in addition to the previously established Help to Buy and the Rebuilding Ireland Homeloan schemes which also support first time buyers.
