Noel Ahern (Dublin North West, Fianna Fail)

The rate of house price increase has generally declined in recent quarters and is now considerably lower than in the late 1990s. The figures for the third quarter of 2004 show this trend continuing with rates of increase well below those in 2003. The latest increases for new houses nationally are 10.6% and in Dublin, 9.9%; for second-hand houses nationally, 10%, and in Dublin, 9.1%. While my Department does not forecast house prices, several market commentators predict that the trend in prices will increase moderately this year. The likelihood of this is underpinned by the trend of housing output, with 2004 likely to be the 10th year of record housing output and indications of a continued high level of output in 2005 and subsequent years.

The Government will continue to promote moderation in house prices through effective policies, including measures to ensure adequate housing supply in keeping with demand in the context of balanced and sustainable growth of the housing market.

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