Vol. 543 No. 4
122 Mr. N. Ahern asked the Minister for the Environment and Local Government if European or national data are available on the affordability of houses; if he will outline the trend on affordability over recent years; the way in which Ireland compares with other EU countries in this regard; if the price of houses compared to income as a cause of concern; and if he will make a statement on the matter. [27342/01]
The Government has implemented a range of measures to improve housing affordability, particularly for first-time buyers and low income house purchasers, including the following: revised stamp duty thresholds and rates to ease the burden on first-time buyers; measures to discourage speculative demand; the provision of affordable housing under the affordable housing scheme, and in future under Part V of the Planning and Development Act; and significant improvements to the terms of both the shared ownership and the affordable housing schemes.
Over the past two years a combination of factors have assisted housing affordability including high levels of economic growth which have facilitated lower tax levels and increased disposable incomes, increased employment, lower mortgage interest rates, low inflation and moderating house price trends. The increasing share of first time buyers in the market is evidence of the positive effect of measures taken to improve affordability for low income house purchasers. Taking all mortgage holders into account, the mortgage repayment burden as a percentage of average household disposable income stood at 28% in 2000, compared to a peak of 49% in 1982.
Exclusive comparative data on housing affordability in EU member states is contained in Housing Statistics in the European Union 2001, a copy of which is available in the Oireachtas Library.
