Noel Rock (Dublin North West, Fine Gael)
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346. To ask the Minister for Housing, Planning, and Local Government if he has examined a report by an organisation (details supplied); his views on the projected 10% increase on housing prices in 2018; and if he will make a statement on the matter. [17247/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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As the Deputy will be aware, chronic under-supply of housing across all tenures, for several years during the economic downturn, is at the heart of the significant challenges which exist in the housing sector. The residential construction sector in Ireland was severely impacted by the economic downturn, with housing output falling by almost 90% between 2006 and 2013.

The latest CSO Residential Property Price Index (RPPI), published on 12 April 2018, indicates that, while house prices are continuing to rise, the national index is 21.8% lower than its highest level in 2007. Dublin residential property prices are 23% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 27.5% lower than their May 2007 peak. Alternative measures available in this area from Daft.ie and MyHome.ie show similar but slightly lower trends. While these indices are based on asking prices, the CSO data is based on completed property transactions. For example, the latest Daft.ie report indicates that asking prices are increasing by 7.3% nationally and 8.4% in Dublin.

While the statistics in the various reports may differ somewhat, all reports point to a strong demand for housing, bolstered by economic recovery and falling unemployment. This is further evidenced in the draft Government’s Stability Programme Update 2018 which was published by my colleague, the Minister for Finance, Public Expenditure and Reform, earlier this week. 

Under Rebuilding Ireland and in order to get overall house building at scale activated again, the Government has, inter alia:

- approved investment of €200 million in key enabling infrastructure to open up strategic public and private sites for early development;

- updated, streamlined and de-risked the planning and regulatory regime for houses and apartments; and

- announced arrangements for development finance to be made available to house builders.

There is clear evidence that Rebuilding Ireland is having a positive impact with all housing activity indicators continuing to show encouraging trends:

- Home builders have notified 18,500 new residential construction commencements over the twelve months to end February 2018, an increase of 41% year on year;

- Planning permission was granted for almost 20,800 new homes in 2017, an annual increase of 27%;

- The CSO's preliminary Quarterly National Accounts for 2017 showed a 33% growth in residential construction investment;

- Large scale residential developments are securing planning permission through the new Strategic Housing Development (SHD) process in An Bord Pleanála.

In addition, on 22 January, I announced a further package of affordability measures, including the Rebuilding Ireland Home Loan, a new Affordable Purchase Scheme, and a focus on cost rental projects, full details of which can be accessed at .

While the housing market is complex, through the multiplicity of actions currently being progressed through Rebuilding Ireland to increase the supply of high quality homes to at least 25,000 per annum by 2020, the Government has created the conditions required for the restoration of a more sustainable and normally functioning housing market capable of providing homes, at affordable price points to buy or rent, where and when they are required.