Written answers

Thursday, 23 June 2016

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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101. To ask the Minister for Finance the extent to which he sees opportunities for incentives to encourage the construction sector to embark on an accelerated house building programme given the necessity to ensure that the benefits of any measures are passed on to the buyer, with particular reference to those attempting to purchase a family home; and if he will make a statement on the matter. [17765/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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A number of measures have already been implemented to help address the underlying supply constraints in the housing market, either directly by my Department or by the agencies under the auspices of my Department. One such measure was the €500 million Activate Capital joint venture between ISIF and KKR to make funding available to the house building sector. Another key measure was NAMA's commitment to support the delivery, on a commercial basis, of up to 20,000 residential units by the end of 2020. While there is evidence of a pick-up in housing supply, it is clear that the level of supply is currently not sufficient to restore the housing market to a sustainable equilibrium resulting in rising house prices.

In the Programme for Government, an ambitious target has been set of ensuring that 25,000 additional new houses are built each year by 2020. To achieve this target, the Government has committed to implementing a number of policy actions designed to help address the outstanding bottlenecks in the housing and construction sector. The Government has already began to fulfil its commitment with the recent announcement of a €200 million Local Infrastructure Fund. This fund will provide local authorities with the access to finance needed to address local public infrastructure deficits thereby opening up sites for development and improving the viability of construction in the residential market. The local infrastructure fund reflects the proactive approach which this Government will continue to take as it seek to address the remaining issues in the housing market.

The Government is currently taking into account the final recommendations of the Oireachtas Committee on Housing and Homelessness and the input from a number of relevant stakeholders as it develops the Action Plan for Housing. Once published, the plan will include a number of time bound and targeted actions designed to expedite the construction process and boost housing supply. By addressing supply constraints throughout the residential market, housing should become more affordable for potential house purchasers.

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