Noel Ahern (Dublin North West, Fianna Fail)

The answer in respect of the Deputy's point concerning the percentage of people with 40-year mortgages is "Yes". I am concerned and have said so several times. While it is easy to blame the developers for rising prices, in the past 12 months, the amount of credit provided by financial institutions through various gimmicks, such as 40-year mortgages, 100% mortgages, interest-only mortgages and other initiatives in an extremely tight market has been extremely inflationary. It has increased prices. Buyers always wish to join the housing market and some gimmicks, such as 100% mortgages, have brought forward demand. People may decide to opt to take out a 100% mortgage now, whereas previously they had been considering the purchase of a house in 2008 or 2009. When this is added to the additional 90,000 people participating in the economy, as well as the 70,000 people who entered the country last year, I accept that enormous pressure exists.

The national average price for a new home is €287,000, while it is €360,000 in Dublin.

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