Jerry Cowley (Mayo, Independent)
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Question 183: To ask the Minister for the Environment, Heritage and Local Government his views on the reintroduction of the first time buyers grant; and if he will make a statement on the matter. [32498/06]

Noel Ahern (Dublin North West, Fianna Fail)
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Access to affordable housing for first time buyers remains a core objective of housing policy. This objective is being supported by

record levels of housing as evidenced in the completion of some 285,000 houses since the termination of the first time buyers grant in 2002, and

significant output under an expanding range of affordable housing schemes: some 17,000 units are to be provided through these schemes between 2007 and 2009.

These targeted measures, in particular, assist low income purchasers. They represent a better means of improving the affordability of house purchase and a more effective deployment of resources, than a general first time buyer grant which would over time become absorbed into the house price. Other general measures are in place through the tax system to assist first time buyers, such as stamp duty concessions and mortgage interest relief.

There is strong activity at present by first time buyers in the market. It is estimated that 45% of new house loans in 2005 were taken out by first time buyers. In addition, the average age of Irish first time buyers in 2005 was 30. Over half of these purchasers were aged 29 or under. This compares with a corresponding average age in the United Kingdom of 34.

The Government will continue to prioritise effective action to maintain current high levels of supply in the housing market and in particular, will accelerate measures to assist those who cannot access affordable housing without assistance.