Thursday 18 December 2014

Taoiseach: No property bubble but housing pressure to go on

Published 24/07/2014 | 15:19

Taoiseach Enda Kenny says there isn't a bubble in the property market, despite prices rising by €220 a day in Dublin.

Mr Kenny says the "pressure" in the housing market in Dublin will continue for another 18 months to two years.

In the wake of a report showing a 24pc increase in house prices in a year, Mr Kenny said he did not accept there was a property bubble.

Mr Kenny says the Government plans to increase the supply of quality, affordable housing.

The Taoiseach says the issue of housing provision is of "particular importance" to the Government.

He said the rise in houses prices was "driven by the law of supply of demand".

"I don't accept there is a bubble. But I do accept there is an issue of supply and demand," he said.

Mr Kenny said there were 90,000 houses built at the peak of the boom, but the output last years was less than 9,000.

He said the Government wants to see house building rise back up to 25,000 houses.

Mr Kenny said the Coalition was undertaking a number of initiatives around planning and availability of finance.

But he admitted there would be a "period of 18 months to two years to make a visible impact".

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