Vol. 540 No. 1
64 Mr. Gilmore asked the Minister for the Environment and Local Government the percentage increase in the average price of a new house in the Dublin area since July 1997; the steps being taken to deal with the escalating cost of housing; and if he will make a statement on the matter. [20079/01]
My Department's house price data are based on quarterly returns from lending institutions and, therefore, data for the exact time period requested are not available. However, the nearest available baseline figures, for the quarter ended June 1997, compared with the most recently published figures, for the quarter ended 31 December last, indicate that average new house prices for Dublin increased by approximately 90% in the three and a half year period.
In the 12 months to the end of June 1997 Dublin new house prices have increased by 27.4%. The Government immediately set about identifying and implementing a range of measures to boost housing output and to stabilise the housing market. The measures introduced have proved suc cessful. Output in the greater Dublin area in 2000 was up 12% on 1997. Dublin new house price increases were 12.5% in the 12 month period to end December 2000, less than half the rate of increase recorded in the year to June 1997. This moderation has been achieved against a background of continuing high demand, brought about by a combination of strong economic and demographic factors, and lower interest rates.
Government strategy is to increase housing supply to meet demand and to improve affordability, particularly for first time purchasers and we have implemented a wide range of measures to achieve these ends. There is evidence that the Government's actions over the last few years have had a significant positive impact not only in moderating house price increases. For example, new house grant applications increased by 4.8% last year and by a further 8.5% in the first five months of this year compared with the same period last year. The first time buyer share of the mortgage market has also increased significantly.
The Government will continue to monitor housing developments and to review policies, as necessary, to ensure the unprecedented expansion in housing demand associated with our economic success is met in a sustainable way.
Does the Minister of State agree he presented these figures in the most favourable possible light to himself and the Government by quoting a figure for the June quarter of 1997 which was not published until late 1997 and by quoting the published figure for six months ago and that if he gave the accurate figures, a comparison of house prices in Dublin between the time he took office and now would show they have increased by more than 100%? Does he also agree that while he has continued to tell us over the four years he has been in office that the rise in house prices is slowing down and that more and more houses are being built, in reality house prices have continued to increase, young working couples have been priced out of owning a home of their own and it is getting more difficult for people in good jobs to be able to buy a home of their own? Is he proud of the fact that this Government has priced young working couples out of their right to buy a home of their own?
I continue to wonder at the hypocrisy and audacity of Deputy Gilmore. He ignored the fact that I mentioned that when the Government of which his party was a member was in office up to June 1997—
Young working couples could buy a house when we were office.
The Deputy shouts when I try to give him the facts; he should allow me to speak.
The Minister of State should talk about the four years he has been in office; he has done enough damage in that time.
I will repeat what I said in case the Deputy did not hear it. In the 12 months to the end of June 1997 when his colleague in the Labour Party was the Minister, house prices increased by 27.4%.
What about the period since the Minister of State took up office?
Deputy Gilmore, allow the Minister of State to continue without interruption.
We get this continuous mantra from members of the Labour Party, especially from Deputy Gilmore. I do not know where he thinks it will bring us. We have set out to increase the supply of affordable houses. We have taken measures to take the investor out of the market as far as possible so as to increase the possibility for first time buyers to be able to buy at a reasonable price. That adjustment is taking place and that is satisfactory. As I outlined in the statistics, first time buyers are getting a better opportunity now with a bigger share of the mortgage market. That is the real test and I am pleased that is happening.
There is a need for a major increase in the output of social housing and that is coming through in the number of starts this year. The number of completions this year will be practically double last year's figure across the whole spectre of social housing. People on the housing waiting list can expect to be housed within a reasonable period. If we had continued the level of output that existed prior to when we came into office, those people would not have a chance of being housed. There is an economic boom, a large number of people are getting work at home and many are returning from abroad. All these factors add to the demand for housing.
Is there a time limit on the Minister's reply?
I appeal to the industry to respond. The industry was pitching its planning and building targets at the wealthier investor types.
The Minister of State is talking out the answer.
I am not.
He is.
I am elaborating on what this Government stands for and I am not interested in getting into a harangue about these things.
He is trying to kill time and the question because he is embarrassed.
I am not embarrassed.
The time for this question is concluded.
That is because the Minister of State talked out the answer—
There were a number of interruptions. The Chair has no control over the length of the Minister's answer. I call question No. 65.
—because he is embarrassed about his record. Young people with good jobs, teachers or gardaí, cannot afford to buy their own houses. It is not a laughing matter. The smile will be on the other side of the Minister of State's face when he faces the electorate.
