The new house grants scheme was introduced in its present form in 1977 when only 17,000 or 18,000 new private houses were being built each year. Last year private housing output amounted to 37,487 units. The main purpose of the grant was to encourage new house building. Although no longer the case, when first introduced it was a support for the construction industry. For this reason first-time purchasers who bought existing houses did not receive grant assistance. At the time the grant was set at the high level of £1,000 in order to boost new house building. That sum represented about 7% of the average new house price. Today, at €3,800, it represents only 2% of the average new house price and is no longer such a major element in the calculation for the purchase of a house.