Dáil Éireann Debate, Tuesday - 4 April 2017
339. Deputy Noel Rock asked the Minister for Housing, Planning, Community and Local Government his views on whether evidence (details supplied) points to another or looming housing bubble; if so, the actions he will take to address the matter; and if he will make a statement on the matter. [16794/17]
Amharc ar fhreagraAs the Deputy will be aware, chronic under-supply of housing across all tenures, for several years during the economic downturn, is at the heart of the significant challenges which exist in the housing sector. Housing output fell by over 90%, from peak construction of 93,000 homes in 2006 to just over 8,301 in 2013, and while current levels of house completions are increasing, reaching almost 15,000 new homes in 2016, this level is still well short of the 25,000 homes required each year to meet demand.
Recent reports show that demand for housing remains strong, driven by economic growth and increasing numbers of households as well as pent-up demand built up over years of under-supply, as evidenced by annual average price increases of approximately 9% on a national basis and between 8.7% and 10.2% in Dublin. However, it should be noted that average prices are still well below the peak levels recorded in 2007, according to the CSO’s Residential Property Price Index.
The Government’s multi-stranded Rebuilding Ireland Action Plan for Housing and Homelessness is aimed, inter alia, at increasing supply of new homes across all tenures, as well as bringing vacant or under-utilised homes back into use to meet both current and future demand. While we are still at an early stage of implementation, there is already strong evidence that the focus on increasing and accelerating supply in Rebuilding Ireland is starting to work. The latest residential commencements and completions data show that house-building activity is continuing to strengthen. Completions for the 12 month period to end January 2017, stood at 15,256 homes, an 18% increase year on year. Likewise, commencement notices for 13,334 new homes were submitted in the twelve month period to end January 2017, an increase of 44% year on year. Identification and development of key sites in the major urban areas where demand is greatest and the recent announcement of €226 million of enabling infrastructure investment to facilitate construction of some 23,000 homes by 2021 are further initiatives that will significantly impact on supply and thereby help to counteract price inflation.
Furthermore, the very significant increase in the Government’s social housing investment programme to €5.35 billion over a six-year period is already ramping up social housing supply. Last year, €935 million was spent providing nearly 18,400 social housing supports. Almost 5,300 homes were built, refurbished or acquired and some 12,000 Housing Assistance Payment tenancies were established. Looking ahead, I have published the Social Housing Construction Projects Status Report - Q4 2016 (available on www.rebuildingireland.ie), detailing the pipeline of over 500 social housing projects, involving the construction of over 8,400 homes at various stages in the process.
While a very significant amount of work has been carried out since the publication of Rebuilding Ireland, I am fully aware of the considerable further progress required to activate housing development sites and to increase and accelerate delivery to the scale required.
The housing market is complex and no one single fix will address all the issues. Nonetheless, I believe that, through the multiplicity of actions currently being progressed through Rebuilding Ireland to increase the supply of high quality homes to at least 25,000 per annum by 2021, the Government has created the conditions required for the restoration of a more sustainable and normally functioning housing market capable of providing homes, at affordable price points to buy or rent, where and when they are required.
