Average house price hits E250,000

John Breslin

The figures also show less than 600 affordable and social housing units were completed last year.

The 591 units were among 77,000 new builds last year, an increase of 12% on 2003. Despite the increase, average prices for new houses rose by over 11%, to E250,000 nationally and to over E320,000 in Dublin.

About one-third of the new houses were one-off, while just over 6,000 were built for local authorities or the voluntary sector, including the 600 under the Section 5 affordable and social housing scheme.

Developers are obliged to set aside 20% but can pay a levy or offer land elsewhere. Some E10 million in levies was collected last year, up tenfold on 2003.

No units were built in the city council areas of Cork, Galway or Limerick, while 30 were put up in Dublin city and nine in Waterford. More than 300 were built in Fingal, north Dublin.

The Irish House Builders Association (IHBA), which welcomed the increase in the number of new houses but said it had concerns over the amount of zoned or serviced land, admits progress has been slow on social and affordable housing but said the number will start to increase from this year.

More of the developments now in planning or in progress are subject to the rule as they received planning permission after Section Five became law, said Kevin Gilna of the IHBA.

“It’s the law and they are complying with the law,” he said of developers. Just over 1,900 social and affordable units are in progress while a further 2,800 are proposed.

Taoiseach Bertie Ahern also recently announced a plan where State land is transferred to developers to build social and affordable houses.

Housing Minister Noel Ahern said 2004 saw continued investment in social and affordable housing measures. Some 1.6 billion was invested in these areas and 12,000 households were provided with such housing in 2004, he said.

“Each local authority has produced a five-year Action Plan 2004-2008 to ensure that the resources are used in an integrated and holistic manner to delivery quality housing,” he said.

Labour housing spokes- man Eamon Gilmore said the minister was “picking up dust” by quoting the figure of 12,000, which includes all local authority and voluntary support and some 3,500 houses which became vacant last year.

“Whilst increased housing output is welcome, it is staggering to consider that in modern Ireland twice as many holiday homes are built than council houses,” said Mr Gilmore.