Controls on house prices
Browne questions whether controls can address rising house prices and the burden on young buyers; the Minister outlines controls on new grant-type homes and disputes the scale of recent price increases.
asked the Minister for the Environment if it is intended to introduce any controls on the increasing prices of houses.
Comment on this
In February 1973 a form of control was introduced under section 35 of the Housing Act, 1966, in relation to the prices of new grant-type private houses in groups of four or more being provided for sale. This control is operated by way of the issue of a certificate by my Department in cases where the price proposed to be charged appears to be reasonable. Concurrent with the introduction of the £1,000 new house grant in July 1977, this control was extended to cover grant-type houses and flats provided for sale. In August 1978 the scope of the controls was again extended to cover a wider range of houses for which building society loans were approved, including non-grant-type houses. A new housing Bill, which I propose to circulate to Deputies in the near future, will contain measures to strengthen the present statutory basis for the control of prices of new private houses and flats being provided for sale.
Regarding the reference in the question to the "increasing" price of houses, the Deputy will be aware that statistics of the average gross prices of new houses for which loans are approved by the main lending agencies are contained in my Department's quarterly bulletin of housing statistics. The notes to the appropriate tables indicate that the houses concerned are not necessarily comparable from quarter to quarter or from area to area. Subject to this reservation, the latest edition of the bulletin shows that the average quarterly change in the gross, price of new houses was plus 11.7 per cent in January-March 1978, plus 8.4 per cent in April-June 1978, plus 3.4 per cent in the third quarter of 1978 and minus 0.2 per cent in the last quarter.
It would be impractical to regualte the prices of previously-occupied houses. These prices are determined by market conditions generally and prices will vary considerably depending on the location, the amenities offered, the state of repair and the general potential of the house.
The Department's quarterly bulletin of housing statistics also shows that the average gross prices of previously-occupied houses for which loans were approved by the main lending agencies increased by 20.8 per cent between the last quarters of 1977 and 1978, respectively, and decreased by 3.4 per cent over the last three months of 1978.
Comment on this
Because of the recent staggering escalation in the price of houses and the increase in loan charges, would the Minister not agree that many young people are having to repay a disproportionate amount of their incomes in this way, and that existing attempts to get some stability in house prices has failed? When the Minister talks about market condïtïons, ïs ït not due to the tact that there is shortage of local authority houses and that young people are pushed into buying private houses?
Comment on this
The Deputy's question relates to controls in relation to house prices. He is now making a speech about the reasons for prices having risen.