Richard Bruton (Dublin North Central, Fine Gael)
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Question 258: To ask the Minister for the Environment, Heritage and Local Government his assessment of trends in the housing market. [12757/06]

Noel Ahern (Dublin North West, Fianna Fail)
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A new record of almost 81,000 housing completions was achieved in 2005, almost two and a half times the 1996 level, continuing a strong performance in housing output over the past decade. The very large increase in housing output has also helped to restrain house price increases in the face of growing demand and increased mortgage lending. On the other hand, some macro-economic commentators now express concern at the significantly increased level of dependence of the Irish economy on the housing sector.

The Government will continue to prioritise effective action to maintain current high levels of supply in the housing market. In particular, the Government will accelerate measures to assist those who cannot access affordable housing without assistance. It is now proposed that 15,000 units of affordable housing will be delivered in the three-year period 2006 to 2008. This represents a doubling of the rate of output of affordable housing over the past three years and will significantly increase the supply of affordable homes and make an important contribution to addressing affordability problems.

Significantly increased output of affordable housing is likely to come on stream this year, particularly through Part V and the affordable housing initiative, and will continue progressively through the three-year period. We will also be streamlining the affordable housing schemes and in the meantime, eligibility and subsidy levels under the various schemes were increased in January 2006.