Vol. 568 No. 5
108 Mr. Durkan asked the Minister for the Environment Heritage and Local Government his strategy for dealing with housing problems; his plans for the short and medium term in this regard; and if he will make a statement on the matter. [16582/03]
114 Mr. Morgan asked the Minister for the Environment Heritage and Local Government his views on whether the lack of affordable housing is the most profound change to affect Irish society in decades; his further views on the fact that purchasing a house, particularly in Dublin, is going beyond the reach of people on an average wage; and his further views on whether the Government has during the past six years in office failed to tackle housing problems. [16580/03]
123 Mr. Gilmore asked the Minister for the Environment Heritage and Local Government the steps he is taking to reduce house prices having regard to the fact that the average price of a new house has broken the ?200,000 barrier; and if he will make a statement on the matter. [16495/03]
I propose to take Questions Nos. 108, 114 and 123 together.
The unprecedented demand for housing, fuelled by rapid economic growth and demographic changes, has been the major driver of house price increases in recent years. Indeed, the impact of Ireland's recent rapid and sustained economic growth and the effect of this on the housing sector, particularly in Dublin, follows a pattern seen in other countries. The substantial increases in housing supply achieved in recent years have been of critical importance in improving affordability and moderating house price increases. Average year on year house price increases have been reduced from a peak of around 40% per annum in 1998 to 8-11% in 2002.
Measures to boost supply such as the Government's investment in infrastructure and the increased residential densities now being achieved as a result of the residential guidelines produced by my Department have been successful in addressing the strong demand for housing. Last year, 2002, was the eighth successive year of record house completions, with 57,695 units completed, an increase in output of 9.7% on 2001, and a more than 30% increase in the housing output in the Dublin area. Ireland is building at the fastest rate in Europe – close to 15 units per 1,000 population last year which is a significant achievement. Recent indicators suggest that this upward trend in housing supply is continuing into this year.
