Dáil Éireann Debate, Thursday - 28 April 2022
173. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which efforts are in place to curtail the upward spiral of inflation affecting house prices; the extent of the measures anticipated to control this surge; and if he will make a statement on the matter. [21579/22]
Amharc ar fhreagraMy Department continues to monitor all aspects of the property market, including the rate of property price inflation, on an ongoing basis. According to the most recent figures released by the Central Statistics Office, the National Residential Property Price Index increased by 15.3 per cent in the twelve months to February 2022.
Many of the factors explaining the current high inflationary environment are not within Ireland’s control, including the inflationary impact of Russia’s unprovoked invasion of Ukraine, the impact of a rapid rebound in global demand and global supply chain disruptions affecting the availability of key inputs. However, the underlying factor driving house price inflation in particular, is insufficient supply.
As a result, the Government’s primary response to mitigate residential price inflation has been to increase supply with recent data providing encouragement in that regard. In the twelve months to March 2022, 34,846 new homes were commenced, the highest since May 2008. Moreover, planning permission was granted for the construction of 42,991 new homes in 2021, the highest since 2008.
In addition to increasing the supply of homes in general, more work needs to be done to increase the supply of social and affordable homes. In Budget 2022, €4 billion was allocated towards housing, including capital funding of €2.58 billion, a large proportion of which will be used to deliver 9,200 new social homes. The vast bulk of this will be delivered through new-build.
Housing for All targets the delivery of 54,000 affordable homes for purchase or rent and over 90,000 social homes by 2030. Achieving these targets will make a real difference in improving affordability for our citizens.
All of these measures testify to the need to take a multi-faceted approach to increase the supply of new housing and I will continue to work closely with my Government colleagues to ensure these targets are delivered.
