10 May 2006

Environment

Housing and First Time Buyers

Ciarán Cuffe asked the Minister for the Environment, Heritage and Local Government the percentage of new home purchasers who are first time buyers in the last year for which figures are available; and if he will make a statement on the matter.

Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern):

My Department does not have a breakdown of new house completions by type of buyer. However, mortgage data provided by the financial institutions indicates that during 2005 first time buyers remained a strong presence in the housing market, representing approximately 45% of the new housing loans paid out in 2005. First time buyers have also a strong presence in the second hand housing market, making up 30% of the second hand housing loans paid out in 2006.

The key objective of Government housing policy is to enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and as far as possible, at the tenure of its choice. To further this objective, the Government has implemented a balanced range of measures to increase overall housing supply and afford greater access to the housing market to first-time buyers; to develop the private rented sector and to advance social and affordable housing programmes specifically targeted at low income groups and those with social housing needs.

It is proposed that 15,000 units of affordable housing will be delivered in the three-year period 2006 - 2008. This represents a doubling of the rate of output of affordable housing over the past three years and will significantly increase the supply of affordable homes for first time buyers.