Bernard Durkan (Kildare North, Fine Gael)
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79. To ask the Minister for Finance the extent to which house price inflation here is likely to affect economic performance in the future; and if he will make a statement on the matter. [46043/24]

Jack Chambers (Dublin West, Fianna Fail)
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My Department continues to monitor all aspects of the property market – including the rate of house price inflation – on an ongoing basis, although policy issues in this area rest with the Minister for Housing, Local Government and Heritage.

According to the most recent figures released by the Central Statistics Office (CSO), annual property price inflation was at 10.1 per cent in August.

Rising property prices reflect a structural shortage of supply owing – in part – to demographic and economic developments, rising incomes, and easing financial conditions. Over the medium term, imbalances between housing market demand and supply can create upward pressure on prices, with the potential to impact competitiveness and labour supply, and thereby economic performance.

The Government has recognised its role in addressing this structural imbalance through our 2021 Housing for All strategy, and its programme of housing delivery designed to meet the needs of a growing population and economy. Supply side measures in the interim have included the waiver on development levies and Uisce Éireann rebate, the Project Tosaigh initiative to activate land with planning permission and the Croí Cónaithe (Cities) scheme to support the building of apartments for sale to owner-occupiers.

These measures have helped to encourage a significant supply response. Since publication of the Housing for All plan in September 2021, more than 90,000 new homes have been built, with completions at 29,662 in 2022 and 32,548 in 2023 ahead of target in both years. More recently, data from the CSO showed new home completions of 8,939 in the third quarter, the highest completions in any corresponding quarter from the beginning of the series in 2011.

The Government recently agreed new housing targets which will see us deliver an annual average of 50,500 homes per year, building up to 60,000 in 2030. To date, it is clear that the measures put in place by Government have encouraged an increase in supply toward those targets. This is evident from recent planning data showing permissions granted for 37,743 new homes in the year to July 2024.