Tim Lombard (Fine Gael) | Oireachtas source

I welcome my two former colleagues back into the Chamber and wish them the best of luck. It is great to have two new Senators and a full complement in the House again.

I bring to the attention of the House what I believe is an impending crisis in the building industry. In the next few months, we face a scenario where the inflation we have seen in products will result in a significant increase in house prices. The price of timber has increased by 50% in the past four months and two further price rises are due in the next two months. This will mean a 70% increase in the price of timber in a six-month period. One can only get a quotation for timber on a five-day rotation now. A quotation for trusses for a house only lasts for five days, which makes it nearly impossible for the industry to provide quotes. The same applies to cement to steel, with the price of the latter increasing in price by nearly 60% in the past six months.

I was contacted by a woman during the week who signed a contract for a house before Covid, in November. House prices have gone up by €35,000 in the last six months. The bill of quantities has been produced for her and it is in line with inflation in materials prices, which means she is under exceptional pressure to finance the closing out and finishing of the house. If we are to continue on this line, house price inflation could be anything up to 25% in six months' time. That will have a significant effect on house building and affordability. We need a serious debate with the Minister for Housing, Local Government and Heritage on how we will ensure the economy will be sustainable in future and on whether the inflation we have seen in these products can be justified.

This, in many ways, has a smell of 2006 about it. In 2006, our economy grew dramatically. Inflation in labour force and product costs drove the housing market around the bend. We are starting on the same circuit again.Unless there is a real change in policy, we will, unfortunately, have people, like those who have contacted me, who are grossly affected by this.