I propose to take Questions Nos. 8, 40, 44 and 189 together.
The unprecedented demand for housing, fuelled mainly by rapid economic growth and demographic changes, has been the major driver of house price increases in recent years, and increases in the cost of building materials are only one of a range of factors driving these increases. The Government's strategy is to increase housing supply to meet demand and to improve affordability, particularly for first time buyers, and in this way to seek to bring moderation to house price increases.
The measures introduced by this Government to boost supply, such as significant investment in infrastructure, removing planning constraints and promoting the increased residential densities, are having effect. Last year was the eighth successive year of record house completions, with 57,695 units completed, an increase in output of 9.7% on 2001, and an over 30% increase in the housing output in the Dublin area. Ireland is now building at the fastest rate in Europe, with close to 15 units per 1,000 population last year, which is an outstanding achievement. This positive trend in supply has continued into this year, with statistics showing that overall house completions for the first six months were up 16.5% on the same period last year. Completions in the greater Dublin area were up 10.6% while completions in Dublin were up 13.8%.
House price increases and the impact of these on affordability are a matter of continuing concern. While the rate of house price increases is still problematic, this has moderated considerably since the late 1990s, when price increases peaked at 40% per annum in 1998. In order to address problems associated with increases in price levels, the Government has worked to ensure the continuing enhancement of supply. At the same time, the Government is concerned to ensure that the broad spectrum of housing needs is met. Almost €3.8 billion was spent in the first three years of the national development plan on social and affordable housing measures, reflecting the strong commitment of the Government to meeting needs of low income groups and those with social and special housing needs.
The Government is committed to continuing with measures to boost the supply of housing and ensuring that the demand for housing is met in a sustainable manner. We will continue to monitor and review housing developments and policies as necessary, including examining possible measures aimed at moderating land costs for housing and other essential public infrastructure. Consideration of these issues will be finalised in light of the recommendations of the All-Party Oireachtas Committee on the Constitution, expected early next year, and the NESC report on housing and land policy, expected by year end.