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.