Donal Moynihan (Cork North West, Fianna Fail)

The Government has successfully promoted a range of measures to boost the overall supply of housing, modernise and develop the private rented sector and provide a range of well targeted schemes to meet the needs of those who cannot afford accommodation in the private sector. As a result, we have seen record levels of housing output in recent years while social housing output has reached levels not seen for more than a generation. The achievements witnessed in the housing construction industry in the past decade are nothing short of phenomenal. We have rates of house building not seen elsewhere in Europe. To put the scale of activity into perspective, three out of every ten homes in Ireland have been built within the past ten years, which is almost 500,000 units. The overall prospects for the housing market appear positive in the context of continuing economic strength, income growth and current favourable interest rates. The indications are that there will be a continued high level of housing output in 2005 and succeeding years.

In recent years we have put in place a range of targeted schemes to assist first-time buyers. These included the shared ownership scheme and the 99 affordable housing schemes developed under Part V of the Planning and Development Act. Almost 17,000 houses have already been purchased through the shared ownership scheme and more than 3,900 houses have been provided through the 99 affordable housing schemes. The projected 2,500 units under Part V of the Planning and Development Act amounts to over 10,000 units in total projected for delivery under this initiative. Increased housing output is providing greater opportunities for first-time purchasers. In addition, the stamp duty changes announced in the 2005 budget have helped open up the second-hand market to first-time buyers, providing savings of up to €12,000 in some cases. Interest relief is also designed to favour first-time buyers. The Government is ensuring that more and more young people are realising the wish to own their own houses.

On social housing, record levels of funding have been allocated to local authorities for the 2005 housing programme. This improved funding means that 5,500 new local authority houses will have commenced construction this year compared to an average of 4,700 in the past three years. Between local authority and voluntary housing programmes work is in progress on more than 10,000 social housing units at present. Some €17 million will be spent this year on disabled persons and essential repair grants schemes for the elderly. The new central heating programme provides funding for local authorities to install central heating in their homes. A provision of €30 million has been made for this programme in the current year.

Local authorities have been enabled to purchase additional housing stock and to give loans to individuals to purchase their own houses, which has been a great achievement.

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