Noel Ahern (Dublin North West, Fianna Fail)

House price increases have been driven primarily by the increase in demand for housing that has resulted from the unprecedented growth in recent years in the population and the economy. In response, the Government has taken action on a wide front to maximise access to home ownership, especially through measures to promote adequate supply of housing to meet demand.

Investment in infrastructure, streamlining of planning and more effective use of land have been co-ordinated to produce record housing output. Almost 81,000 houses were built in 2005; ten years ago, the figure was under 31,000. As a result, we are providing new homes at a much faster rate than other countries in Europe, with about 20 new homes produced annually per 1,000 population compared with five per 1,000 on average in the European Union.

Almost one third of all Irish homes were built in the past ten years. These, along with the delivery of more than half a million new homes since 1997, have enabled an unprecedented number of first-time buyers to access home ownership during this period. I am especially pleased that supply in Dublin has increased significantly, with 18,000 new homes completed last year, double the output of ten years ago.

We have also supported first-time buyers through improvements in tax reliefs and stamp duty. A number of concerted measures have been taken through the Government's social and affordable housing programmes to increase the availability of affordable housing. Investment of some €4 billion will be made under these programmes over the next three years. Approximately 15,000 households will benefit under affordable housing schemes over that period. In addition, in 2005 the Government established the affordable homes partnership to accelerate the delivery of affordable housing in the greater Dublin area where the problems are the most acute.

These measures form an important element of our policy to address affordability concerns. In December 2005 the Government launched a new housing policy framework, Building Sustainable Communities, to build on achievements and to focus delivery and increased investment over the coming years. This will ensure that we can improve the quality of housing and neighbourhoods, continue to create conditions where housing output will meet demand and provide targeted support for those with particular affordability problems.

The large increase in housing output that has been achieved has helped to restrain house price increases in the face of continuing strong demand pressures and increased mortgage lending.

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