Dáil Éireann díospóireacht -
Thursday, 7 Mar 2002

Vol. 550 No. 2

Written Answers. - House Prices.

Gerry Reynolds

Ceist:

399 Mr. G. Reynolds asked the Minister for the Environment and Local Government the average price of a new house; the average price in June 1997; the steps he is taking to resolve problems in the housing area; and if he will make a statement on the matter. [8016/02]

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

Information in relation to the average price of new houses is provided in my Department's quarterly housing statistics bulletin, copies of which are available in the Oireachtas Library.

The Government has implemented a wide range of measures to reduce excessive house price increases by boosting housing output, removing infrastructural and planning constraints on residential development and discouraging speculative demand. These have included: extensive measures to increase housing supply including the introduction for the first time ever of a greatly expanded four year multi-annual local authority housing programme and the unprecedented expansion of the voluntary housing programme; increasing the supply of serviced residential land through targeted initiatives and the commitment of significant Exchequer funding – on foot of these initiatives, there is currently six years supply of serviced residential land nationally and in the greater Dublin area; securing the more efficient use of serviced housing land through higher residential densities; introduction of a range of measures to expand the capacity of the planning system, including the appointment of additional planning staff to local authorities and An Bord Pleanála significantly improving the eligibility criteria under both the shared ownership and the affordable housing schemes, and introducing innovative legislation through Part V of the Planning and Development Act, 2000, to increase the supply of affordable housing going forward; the removal, in April 1998, of mortgage interest relief for investment in the residential housing market and the introduction of higher rates of stamp duty on such investments with the aim of discouraging speculative demand; and the rebalancing of stamp duty rates to favour first time purchasers including increasing the exemption limit from €76,184 in 1997 to €190,500 currently.

These measures have had a very positive effect in moderating house price increases and significantly increasing housing output. Average year on year house price increases have been reduced from a peak of around 40% per annum in 1998 to about 5% to 6% in the September quarter last year compared to the September quarter 2000: this has allowed the Government to reintroduce mortgage interest relief for investors and adjust stamp duty rates for investors in budget 2002.

Last year was also the fifth successive year of record housing output since the Government took office. A total of 52,602 units were completed in 2001, up 5.6% on 2000. A total of 16,498 units were completed in the greater Dublin area, up 6% on 2000, and the highest level of output ever produced in the greater Dublin area. Local authority housing output of over 5,000 units was at the highest level in 15 years and voluntary housing output of some 1,250 units was the highest level ever recorded.