Seán Haughey (Dublin North Central, Fianna Fail)
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Question 1507: To ask the Minister for the Environment, Heritage and Local Government the measures he is taking to reduce house prices for first time buyers, particularly in the Greater Dublin Area; and if he will make a statement on the matter. [29174/06]

Noel Ahern (Dublin North West, Fianna Fail)
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The Government have taken action on a wide front to maximise access to home ownership, particularly through measures to promote adequate supply of housing to meet very strong demand. In addition, we have supported first time buyers through a range of targeted measures, notably affordable housing schemes, tax reliefs and stamp duty reduction.

The delivery of over half a million new homes since 1997 has enabled an unprecedented number of first time buyers to access home ownership during the period. Almost 81,000 houses were built in 2005 compared to less than 31,000 ten years ago. In the first seven months of 2006, 51,752 houses and apartments were completed nationally. This represents an increase of 23.6% on the corresponding period in 2005. Supply in Dublin has also increased significantly. 18,000 new homes were completed last year, double the output of ten years ago. Completions in the first seven months of 2006 amounted to 10,869 units, an increase of 13.5% on the corresponding period in 2005. The Government will continue to focus on maintaining overall housing supply at a level consistent with the continuing strong demand and maximising the availability of affordable housing through a range of instruments including investment in infrastructure, streamlining of planning and more effective use of land.

A number of measures to assist those who cannot access affordable housing without assistance have been put in place. In 2005 the Government established the Affordable Homes Partnership to accelerate the delivery of affordable housing in the Greater Dublin area, where availability is most acute. The Partnership, whose remit has recently been extended, is making very good progress in their work. Eligibility and subsidy levels under the various schemes were increased in January 2006. The partnership agreement Towards 2016 has set an ambitious target of delivering some 17,000 affordable homes over the period 2007 to 2009. This represents a significant increase on the rate of output of affordable housing over the past three years and will make an important contribution to addressing affordability problems. Investment of some €4 billion will be made under the various schemes over the next three years.

On the fiscal side first time buyers are entitled to mortgage interest tax relief on higher amounts of interest, up to €8,000 in the case of a couple, for the first 7 years of the loan. Reduced stamp duty yielded significant savings for first time buyers and has been particularly beneficial for people saving for a deposit.