Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

The residential construction sector in Ireland was severely impacted by the economic downturn, with housing output falling by almost 90% between 2006 and 2013. It is unsurprising, therefore, that the lack of housing supply and the lack of a competitive market are widely accepted as being primarily responsible for driving the high levels of house price and rental inflation that we have seen in recent years.

In order to directly influence and generate supply of new homes, the Government's Rebuilding Ireland action plan contains a suite of actions, such as the €226 million LIHAF that we just discussed; leveraging the value of State-owned lands to deliver a more affordable rental offering in rent pressure zones; streamlined planning systems for housing developments; and other planning reforms to provide flexibility to deliver viable housing schemes and apartment developments in the right locations. In addition, analysis of vacant dwellings data from the 2016 census provides strong evidence for targeted policies to maximise the number of vacant properties that can be brought back into use, especially in our cities and large towns where demand is greatest.

Recent housing activity reports, available on www.rebuildingireland.ie, show that strong supply-side measures are beginning to have a positive impact, with all output indicators showing upward trends. However, it is crucial that we continue to focus on supply and particularly the supply of homes at more affordable price points.

As part of the targeted review process for Rebuilding Ireland, I have asked my Department to focus in particular on the broad issues of housing supply and affordability for different market segments, building on the measures already being advanced under the action plan.

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