Bernard J. Durkan
Ceist:1259 Mr. Durkan asked the Minister for the Environment, Heritage and Local Government his plans to deal with the housing crisis; and if he will make a statement on the matter. [22927/04]
Amharc ar fhreagraWednesday, 29 September 2004
Ceisteanna (1077)
Freagraí scríofa
Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern)
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. 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, including significant investment in infrastructure, improving planning capacity and promoting increased residential densities, are having effect. The year 2003 was the ninth record year for house completions, with 68,819 units completed, an increase in output of 19.3% on 2002 and an increase of 10.5% in output in the greater Dublin area during the same period.
Output continues to remain high in 2004 with 35,957 units completed in the first six months of this year. Ireland is building at the fastest rate in Europe — 17 houses per 1,000 population — which is an outstanding achievement.
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. A number of market commentators, including the Central Bank, are now predicting greater balance in the housing market over the next few years, as increased supply has a restraining effect on house prices. Indicative data available to the Department shows that first time buyers continue to have a significant presence in the housing market.
The Government will continue to focus on measures to maintain a high level of housing supply in keeping with demand and ensuring that the demand for housing is met in a sustainable manner, and we will continue to monitor and review housing developments and policies as necessary.
At the same time, the Government is concerned to ensure that the broad spectrum of housing needs is met. Almost €5.17 billion has been spent in the first four years of the national development plan on social and affordable housing measures, over 7% ahead of the forecast for that period, reflecting the strong commitment of the Government to continue to meet the needs of low income groups and those with social and special housing needs.
The total amount of funding available for social and affordable housing measures in 2004 of €1.884 billion is more than four times that amount provided in 1997 and represents an increase of 5.4% on the 2003 provision. It is anticipated that the needs of over 13,000 households will be met through these measures in 2004, compared to almost 8,500 in 1998.