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Dáil Éireann díospóireacht -
Tuesday, 4 Nov 2003

Vol. 573 No. 3

Written Answers. - Housing Policy.

Arthur Morgan

Ceist:

663 Mr. Morgan asked the Minister for the Environment Heritage and Local Government the overall aim of the Government's housing policy; and if he will make a statement on the matter. [25035/03]

The overall aim of the Government's housing policy is to enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and, as far as possible, at the tenure of its choice. 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.

There is clear evidence that the measures to boost supply, such as the Government's investment in infrastructure, removing planning constraints, 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 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. 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.

The effects of this increased output are being reflected in moderating house price trends. Average yearly house price increases have been reduced from a peak of around 40% per annum in 1998 to more moderate levels currently. Affordability has also been assisted by a range of factors, including high levels of economic growth, which have facilitated lower tax levels and increased disposable income, increased employment, lower mortgage interest rates and low inflation.

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. It is also concerned to ensure that the broad spectrum of housing needs is met, and remains committed to continuing with measures to assist low income groups and those with social housing needs by means of a range of targeted social and affordable housing programmes. Overall capital spending in 2003 on social and affordable housing programmes will be about €1.7 billion, a near 7% increase on the amount provided in 2002, which should enable the housing needs of about 13,000 households to be met this year.

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