Vol. 508 No. 1
559 Mr. Hayes asked the Minister for the Environment and Local Government the reason 14,994 houses in 1998 were purchased without a mortgage; his views on whether this figure represents a substantial number of new investors purchasing new homes; the further action, if any, he will take to reduce the level of investor demand in the housing market; and if he will make a statement on the matter. [17348/99]
The number of new houses financed without a mortgage in 1998 is likely to have been considerably less than 14,994. Returns from mortgage lending institutions show that 27,355 mortgage loans were advanced for new houses during 1998. Of the total of 42,349 new houses completed in 1998, 3,263 were provided for renting by local authorities and voluntary housing bodies. Moreover, mortgages for some houses completed in 1998 would not have been advanced within the year.
The number of houses financed without a mortgage is not a valid indication of investor activity. A significant proportion of investment purchases are funded by mortgage. Equally, many houses are purchased or built for owner occupation without a mortgage, for example, through use of equity realised from sale of a more expensive house, own resources, inheritances, or non-mortgage borrowing.
