I ask Members leaving the House to do so quietly. I call Deputy Barry Cowen.

Yesterday the homeless figures rose again by 35%. There were 1,026 families and 2,110 children homeless in Dublin. Despite all the apparent efforts that are being made to provide homes for people, this is an increase of 48% on last October's figures. None of us on either side of the House can be complacent about the homelessness crisis. We should make every effort to remove whatever obstacles that exist and are preventing families from leaving emergency hotel accommodation.

A major part of the housing crisis is the lack of supply and yesterday's announcement by the Central Bank is an effort to address it. We all know and appreciate that the 20% deposit requirement was putting enormous pressure on those who are saving to buy a house, particularly those who are already paying exorbitant rents. The Central Bank economists found that the average first-time buyer would have to save €64,000. However, the new requirements will still prohibit those who own apartments from buying a modest house to accommodate a growing family. They are the biggest losers in yesterday's announcement.

There is also a large chance that house prices will be inflated. The new rules will allow first-time buyers to borrow any amount if they have a deposit of 10%, so long as they meet the other criteria. The other criteria include a lending limit of three and a half times the income of the buyer, which we accept and acknowledge is common sense. There is no doubt that many people in the country will be relieved with the announcement as it will possibly enable them to get on the property ladder. However, when these rules are taking in conjunction with the Government's help-to-buy-scheme, some people will only now be required to have a 5% to 10% deposit. Essentially, 95% mortgages are back in town. With the limited supply of new homes on the market at present, there is considerable risk of further house price inflation.

We all know and accept that we want diggers on sites, but these initiatives, on their own, are a high-risk strategy. One of the problems of the housing market is a lack of supply and not enough construction. How can the Government be confident about giving money to potential buyers so that they can outbid each other for limited supply? How does the Government believe that that will not inflate house prices? With building costs still very high, how is the Government sure that developers will not see this combined effort, on their own, as a massive opportunity for them to go back to the future when house prices went out of proportion?

Thank you, Deputy.

Finally, if I may, are the Tánaiste and her Government satisfied that the €50 million allocated for the help-to-buy scheme, in combination with the new Central Bank regime announced yesterday, will not inflate prices? The Central Bank Governor stated yesterday that he would renew the rules if prices rise, but what will the Tánaiste do if she is proven wrong and that is the case? I contend - make no mistake about it - that that will be the case. We need to know if the Government has any idea as to what it will do when it does happen.

The Deputy raised two important issues, namely, the changes to the Central Bank mortgage rules announced yesterday and the issue of homelessness. I will address both of them.

We welcome the changes to the prudential rules announced by the Central Bank yesterday. These rules had set borrowing conditions on those seeking to take out a mortgage. The changes will be welcomed. When we examine the figures on first-time buyers in Ireland, we know that the percentage is far too low. This gives a much needed opportunity to those first-time buyers who have not been able to get on the ladder. As a result of the easing of the rules, they will now be able to do that. This will be welcomed by individuals throughout the country. It is also important to note that it will impact on supply.

Yesterday Professor Lane stated, "The 90% loan to value ratio limit for all first-time buyers simplifies the overall framework, with only 5% of lending permitted above this level". He also stated that the rules needed to be adjusted because they were too complicated, but that the limit of a 3.5 times loan to income ratio on borrowing remains. I believe that deals with the point made by Deputy Cowen. Professor Lane further stated that he will monitor the situation, as will the Government. I believe that these are welcome initiatives that dramatically change the mortgage lending rules. In that regard, I note the reporting from various experts today which speak of a dramatic change. The move is expected to lead to a surge in home building, which is precisely what is required in the country. The situation will be kept under review, but we need an increase in supply and for first-time buyers to be able to move out of renting, as they are paying high rents, and get a deposit together. This allows them to do that. This is a very welcome change for a hard-pressed group, but the situation will be monitored.

The Deputy is well aware of the figures on homelessness. The new figures we have today are those for October. There is a slight increase, but they also show that there is a slowdown in the rate of increase, which must be welcomed. None of us wants to see families in accommodation for the homeless or hotel accommodation. The Minister has made it clear that it his intention, as I am sure it is everyone's intention, for no family to have to live in hotel accommodation. We are working steadily towards ensuring that that is the situation and there will be a change in the early months and towards the middle of next year.

There is an issue, but progress has been made. None of us wants to see families in this situation. Let me note, however, that in 2016 there were 4,240 extra social housing units and that 1,755 homes were purchased, 670 were built and 1,500 voids were made habitable. These are significant figures and we are seeing many families moving out of homelessness. As a Government, we have acknowledged that this is a crisis, but it is being dealt with. The plan was announced in July but, as the Minister acknowledged this morning, it will take time.

The Tánaiste's comment on the homeless figures reminds me of a comment Garret FitzGerald once made about inflation when he spoke of a decelerating rate of acceleration. They sound somewhat similar to say the least-----

It is a hybrid.

-----but far be it for me to be making flippant remarks given the seriousness of the situation.

The emergency and the urgency of the crisis were meant to be resolved in the short term with the provision of modular units.

This time last year 500 rapid-build modular units were promised, of which only 22 have been built. At Question Time this week I asked the Minister to make us aware of the problems in order that we could help to make sure this would not happen again and that the matter would be resolved, whatever the logjams.

On the comment the Tánaiste made on what the Governor of the Central Bank had said yesterday, of course, the rules needed to be changed. They were cumbersome, complicated and downright unfair. However, the problem of supply cannot be solved in isolation, but the measures announced by the Central Bank and the help-to-buy scheme, allied with other measures, would have the desired effect. Will the Tánaiste and the Government consider real supply initiatives that would help and work hand in glove with the announcements made by the Central Bank and the Government such as reducing development levies and revamping certification costs, without compromising standards, as has happened in the United Kingdom, including the North where construction costs are up to five times lower than down here? Will the Government consider VAT reductions? Will it allow the credit unions into the market to allow the provision of competitive finance to be at the heart of the mortgage market?

I repeat to the Deputy that providing affordable, quality and accessible housing is a priority, as can be seen in every action of the Government, in the work the Minister, Deputy Simon Coveney, is doing, in the plan published and its delivery to date, notwithstanding the fact that serious issues remain, with people moving into homelessness and a dysfunctional housing market, one of the most scarring legacies of the work of the Deputy's party in government and its catastrophic handling of the economy. We have taken on the problems with which we were faced and taken every-----

The Tánaiste has all of the answers.

The Deputy has not provided many answers on homelessness.

That is true.

Already this year 320 rapid-build units have been provided.

Some 320 have been provided.

Where?

Construction will have started by year end.

Started.

Yes, on 350 units.

May we have order, please?

There have been 650 housing solutions through the housing assistance payment, HAP, initiative, as well as a 40% increase in the housing budget. A series of actions have been taken. I have acknowledged that they are not-----

They are not working and we want to know why.

They are beginning to work but will take time. That is quite clear.

The Tánaiste's time is up.

Everyone across the House has as much sympathy as the Deputy does for every family that find themselves in this situation. It is shared by all of us. Dealing with this issue is a priority for us and the Minister will make further announcements on the rental strategy in two weeks. We need to consider alternative solutions for families at risk of entering homelessness and they will be announced in the next two weeks.