Sunday 18 February 2018

Hogan insists that Government will take action to prevent a repeat of the property bubble

Michael Brennan, Deputy Political Editor

Environment Minister Phil Hogan has pledged that the Government will take action to ensure there is not a repeat of the property bubble.

It came after economists warned that strong demand for family homes in Dublin is causing the market to overheat - with a 10pc jump in prices over the past year.

Mr Hogan said that both he and Junior Minister for Housing Jan O'Sullivan wanted a sustainable pattern of house building, house purchase and house provision.

"We work together in the Department of the Environment to ensure we don't have the type of scenario we had in the 1990s and into the 2000s where there was a rapid increase in prices and ended up selling houses to ourselves," he said.

Mr Hogan said that the National Spatial Strategy - which lays out where future building should take place. was being reviewed "We are planning for the future and you will see some initiatives from the department over the next couple of months to reflect that," he said.

Junior Minister for Finance Brian Hayes said that a 10pc rise in house prices was "bubble territory" - but said that it showed Budgetary changes were encouraging people to get back into the property market.

"But of course everything will be done to ensure that a property bubble does not take hold and I think it's in all our interests to make sure that does not happen," he said.

The Fine Gael ministers were speaking before the start of a 60km "See the Light" walk from Dublin to Navan to raise funds for Aware.

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