It was only the greed of builders that would increase house prices following the introduction of a range of Government measures to tackle the current housing shortage, the Minister for the Environment and Local Government said.
Builders had tried to frighten the public by claiming that provisions in the Planning and Development Bill would cause house prices to rise by 24 per cent, but there was nothing in it which would make this necessary. House prices in new estates should be stabilised or even fall slightly.
The Bill passed the Committee Stage last night.
Responding to concerns by some Opposition members, Mr Dempsey said careful consideration was being given to anti-avoidance measures to close off loopholes which developers might use to get round the requirement for the provision of affordable housing.
An amendment enabling developers to build social and affordable housing for councils in lieu of transferring up to 20 per cent of zoned land for this purpose was agreed by the House.
Mr Dempsey said it permitted the developer to build such housing at an agreed cost which would be based on the existing use value of the land or site. However, the builder would be entitled to charge the full commercial price on the building and site development costs.
Expressing concern at this proposition, Mr Joe Costello (Lab) said profits on residential developments, particularly in Dublin, were exorbitant and did not relate to the actual cost of labour and materials. He was worried that they were moving away from social housing.
"If the builder gets too greedy, which is not beyond the grounds of possibility in that profession, the local authority can say the houses are not affordable and the objective is not being achieved," Mr Dempsey said.