Extra houses but more homelessness

RECORD numbers of houses were built for the eighth year in a row in 2002, but levels of homelessness continue to rise, a Government report confirmed yesterday.

House prices went up by 8% last year, with the average cost of a new house just over €198,000. In Dublin the average price of a new house was €256,000.

The total value of loans approved by mortgage lending agencies was €14.4 billion up over two-thirds on 2001. But analysts say the return of tax relief brought investors back into the market, with 30% of sales being accounted for by property speculators.