Dáil Éireann díospóireacht -
Tuesday, 12 Dec 2000

Vol. 528 No. 1

Written Answers. - Housing Crisis.

Bernard J. Durkan

Ceist:

51 Mr. Durkan asked the Minister for the Environment and Local Government the action he will take to address the unprecedented shortage of housing throughout the country; if, in view of the total lack of impact on this situation in the past 12 months he will now declare a housing emergency with clearly defined objectives of dramatically increasing the housing stock in both the public and private sector; if he will ensure that those on both the local authority housing lists and families seeking affordable housing will have a reasonable chance of achieving their objectives within a short time; and if he will make a statement on the matter. [29523/00]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

Since coming to office, I have commissioned three major reports on the housing market with a particular focus on the supply and demand for housing and the affordability of housing. The Government has responded positively to the findings of these reports in Action on House Prices, published in April 1998, Action on the Housing Market, published in March 1999, and earlier this year in Action on Housing.

Government strategy, which is proving effective, is to increase housing supply to meet demand and to improve affordability, particularly for first time purchasers.

Total housing output last year was over 46,500, an increase of 20% over 1997, and output is expected to reach 50,000 units this year, a 29% increase on output in 1997.

House price data for recent months indicate further moderation in the rate of increase in average house prices. There is also firm evidence that first time buyers are gaining an increasing share of the new housing market. These trends may be attributed to reduced investor activity in response to measures introduced in Action on Housing and the sustained increases in housing output.

The provision of £6 billion for social and affordable housing in the national development plan, augmented by further investment of almost £1 billion announced in Action on Housing, will ensure that the social and affordable housing needs of almost 100,000 households will be met with Government assistance over the period of the plan.

Part V of the Planning and Development Act, 2000, requires local authorities to prepare housing strategies to address the housing needs of all sectors of the community, including those in need of social and affordable housing. This requires local authorities to make an assessment of current and projected needs for housing in their areas, to prepare housing strategies and vary their development plans to incorporate the strategies. Guidelines for planning authorities on the preparation of their housing strategies, together with a model housing strategy will be published shortly. These, together with earlier measures, provide a comprehensive and coherent response to housing needs.