Noel Ahern (Dublin North West, Fianna Fail)

The average price of a new house in Dublin is €324,000 but that is the average price of all new houses. If one analyses the starter home end of the market, plenty of houses are available in Dublin, certainly on the north side with which I am familiar, in the €230,000 to €270,000 bracket. Affordable houses are being promoted under the various schemes, the details of which I will not go into, and it is only a few months since I opened affordable houses in Balbriggan priced at €140,000 for two bedroom houses and €160,000 for three bedroom houses.

Some people in a certain income bracket are under pressure and we are trying to help them through the various schemes. There was an over-concentration by first-time buyers on the new rather than the second-hand house market and this is why stamp duty was reduced in the budget. This has benefited many people by up to €12,000 so that instead of buying a new house 20 miles out of the city, many new buyers are in a more competitive position to buy in the older suburbs than they were some months ago.

The issue is not just about price but affordability. Figures show that houses are now more affordable than at the time of the 1992 financial crisis. Interest rates are historically low, disposal income is higher than ever and tax rates are low. People have the money and, by and large, are managing.

The key aspect for the Government is to encourage and maximise output. Although the final figures for 2004 are not yet available, the latest output figures for that year showed approximately a 12.5% increase over the previous year. Therefore, it seems the output for last year was approximately 75,000 to 77,000 new housing units, whereas ten years ago that figure was in the low 20,000s. By maximising and encouraging supply, it is now practically equal to demand. However, houses are available for the young couples to which Deputy Gilmore referred. There is a good supply of houses in the €230,000 to €250,000 bracket.

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