Noel Ahern (Dublin North West, Fianna Fail)

It has always been difficult for people buying their first houses. Nothing has changed. The new Department index, which we have compiled for many years, was published last week and is relatively up to date, indicates that affordability was worse around 1990-91, and then eased off. This and the EBS report are based on a 25-year mortgage. They use figures below the normal affordability index which a lending agency would use. It may be good or bad but, perhaps sadly, the typical mortgage now is more likely to be 35 years than 25 years. I am not promoting such mortgages but they are a fact of life. If one has a 35-year mortgage, one's affordability index improves greatly from what was published last week.

It is always a struggle for first-time buyers and prices have certainly increased but, because we have a booming economy, people's wages have increased, their tax bill has decreased and interest rates are still at historically low levels, the overall affordability, while it has worsened in recent years, has not worsened to the extent to which people may think it has.

See this speech in context