Noel Ahern (Dublin North West, Fianna Fail)

Prices have increased and I do not deny they are staggering. Many Senators, particularly Senator Brady, spoke about affordability, which is the key factor. It depends on prices, income before and after tax and interest rates. In the affordability index, which has been calculated over several years, the percentage of one's net pay that goes towards the mortgage repayment is the main figure. During the past 20 or 30 years, the worst years were 1991 or 1992 when interest rates were 16% or 17%. Affordability has diminished somewhat since then, but the current percentage of net pay used to repay a mortgage is not significantly worse than previously.

Often, we speak about first-time buyers. I am not very old, but I have seen many people whose worlds did not cave in when they did not have carpets or fancy wood panelling on their floors for a few months. While it is fair and reasonable that we say much concerning first-time buyers, they are getting by. Last year, 45% of mortgages for new houses were taken out by first-time buyers.