Dáil Éireann Debate, Tuesday - 22 October 2024
469. 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 is hand or likely to be taken to address the issue; and if he will make a statement on the matter. [43267/24]
View answerMy department monitors house price inflation on an on-going basis and will continue to do so.
Prices are down from a peak of 15% for the year to end-March 2022 and the medium-term outlook vis-à-vis house price growth is positive.
Prices are expected to moderate in the latter half of the year and into 2025, with mid-single digit growth forecast for next year. The latest data released by the CSO last week shows residential property price inflation has eased month-on-month, falling from 1.2% in July to 0.9% in August. Similarly, against a backdrop of significantly increased supply, the growth in new home prices has fallen over the last 12 months, decreasing for four consecutive quarters from 11% at end-June 2023 to 7.4% at end-June 2024.
Continued growth in the supply of new homes is key to stabilising prices and easing affordability challenges in the housing market. In this regard, the notable uplift in new home delivery in recent years will be sustained in 2024 and, supported by a robust pipeline of planning permissions and new home starts, is expected to increase substantially in 2025 and 2026.
The uplift is underpinned by the suite of Government measures delivered under Housing for All which seek to address barriers to supply and increase delivery by, among other things, increasing the availability of land, improving viability, and enhancing efficiency and supporting capacity in the construction sector. Government will continue to monitor these and other measures to ensure they are optimally calibrated and targeted to deliver a sustainable level of supply.
