Bernard Durkan (Kildare North, Fine Gael)
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Question 110: To ask the Minister for the Environment, Heritage and Local Government if estimates have been done to determine the number of first-time home buyers likely to be in the market for a home on an annual basis; if research has been done into the way in which such persons are likely to be in a position to house themselves in view of the fact that the shared ownership maximum loan is €185,000 and that the average house price is more than double this; the number of houses of an affordable nature made available through the various schemes and incentives offered by his Department in the past 12 months and based on this, the number likely to be so accommodated in the next 12 months; and if he will make a statement on the matter. [16560/06]

Noel Ahern (Dublin North West, Fianna Fail)
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It is not possible to estimate reliably the level of demand from particular categories of potential house buyers because this depends on a wide range of demographic, economic, financial and social factors. However, indicative statistical data, based on mortgage lending provided to the Department, suggests that in 2005 45% of mortgages for new houses, and 30% for second hand houses were taken out by first-time buyers. While we do not have data on sales of second hand houses, these figures would suggest a sizeable number of first-time buyers have been able to buy both new and second hand houses — largely due to this Government's proactive approach to housing matters.

Since 1997 this Government has improved the planning regime; and has invested substantially in serviced land to the extent that more than 5 year's supply of residential land is available nationally. The stamp duty reductions for first time buyers announced in Budget 2005 have assisted affordability for first-time buyers. This has helped some first-time buyers to afford a starter home who might not otherwise have been able to do so, and has opened up the second hand market to first time buyers, who had previously been deterred by the impact of stamp duty.

Indicative data point to the majority of first time buyers as having paid 13% less than the average price for a house, which for a new house was around €240,000 in the September 2005 quarter — the latest for which Department data have been published. The equivalent price was €306,000 in Dublin.

The shared ownership limit reflects the value of the householder's stake in the property. Over 50% of the shared ownership transactions completed in 2005 were priced at less than €185,000. In the case of transactions completed in 2005 under the Affordable Housing (1999) scheme, almost all were acquired below €185,000. A further 3,000 have been approved for sale at the end of 2005.

My Department has invested €6.5 billion of Exchequer capital in social and affordable housing schemes, many of which directly benefit first time buyers. As a result of our efforts, some 100,000 households — that equates to about one quarter million people — have benefited from various social and affordable housing programmes. Some 2,900 households have been provided with homes under the various affordable housing schemes last year. It is anticipated that the needs of over 4,000 households will be accommodated in the 12 months to December 2006.

The Government will ensure that effective policies and measures continue to be applied and reviewed as necessary, with the overall aim of meeting the broad spectrum of housing need in the context of balanced and sustainable growth of the housing market.