Written answers

Tuesday, 14 February 2006

Department of Environment, Heritage and Local Government

Housing Policy

9:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 111: To ask the Minister for the Environment, Heritage and Local Government his views on the long-term future of the housing situation here; and if he will make a statement on the matter. [5240/06]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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There have been huge advances in housing over the past decade. Overall housing supply has increased dramatically, in response to demands arising from economic growth and demographic change. About one third of Ireland's houses have been built in the past decade and 2005 saw a further year of record housing output, with close to 81,000 new homes completed. Latest forecasts suggest that our population will grow by 1 million over the next 15 years and this will underpin continued strong demand for housing.

Output may not be sustained at 80,000 units per annum and the most recent review of the construction industry 2004 and outlook for 2005 to 2007 prepared by DKM Economic Consultants suggests some easing back of output by 2007. Nonetheless, indications are that supply will be strong in 2006.

The key issue is to ensure that supply is at an appropriate level to meet demand and that the expansion of housing is managed to ensure a quality living environment for householders and local communities. Building on the objectives of the national spatial strategy, the Government launched a new housing policy framework, Building Sustainable Communities, in December 2005. This statement sets out the Government's vision for housing in the coming years.

A key objective of this policy is to promote the conditions whereby the maximum number of people can access affordable accommodation through private provision. A range of supports is required to assist those who cannot access such accommodation from their own resources. All of these policies must be implemented in a manner that promotes sustainable communities. A further statement will be published during 2006 which will set out more detailed approaches to these issues.

Photo of John PerryJohn Perry (Sligo-Leitrim, Fine Gael)
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Question 113: To ask the Minister for the Environment, Heritage and Local Government the action he is taking to ensure the provision of an effective range of supports to households that fall below the affordability threshold for housing as recommended by NESC; and if he will make a statement on the matter. [5264/06]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The Government has actively addressed the issue of housing affordability. Our policy has been to make housing supply more responsive to demand in order to improve affordability and access to housing — particularly for first time buyers. There is clear evidence that this policy is having effect. Last year, 2005, was the eleventh year of record overall house completions with more than 80,000 completions. Increased investment has resulted in some 100,000 households benefiting from the range of targeted social and affordable housing measures since 1997.

The National Economic and Social Council, in its report No. 112, Housing in Ireland, Performance and Policy, indicated that the general thrust of Government housing policy is properly directed. Some key challenges for the future were also outlined, including the continuing need to provide an effective range of supports to households that fall below the "affordability threshold".

During 2005, we brought forward initiatives to specifically address issues raised in the NESC report and through consultation with other stakeholders. In June, we launched the affordable homes partnership to co-ordinate and accelerate the delivery of affordable housing in the greater Dublin area. In December 2005, the Government launched a new housing policy framework, Building Sustainable Communities, setting the Government's vision for housing policy over the coming years. The framework envisages a substantial increase in investment, which will allow for some 50,000 households to be assisted over the coming three years, allied with a programme of reforms particularly focused on improving the quality of the social housing environment. A more detailed document will be published during 2006.

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