Curbing high house prices

Sir, – We do not have to accept the despairing conclusion of Cantillon (“Irish house prices rising 14% higher than incomes or double the EU average”, November 10th) that the trend away from home ownership as a result of higher prices is unlikely to abate any time soon.

What is clear is that a narrow focus on build and supply alone will not be sufficient to reduce house price inflation and promote wider home ownership.

The Government needs to be a bit more innovative – there are various other measures that it could and should consider to address the housing crisis.

On the demand side, the Government could look at restrictions imposed in other countries on house sales to non-residents, such as a requirement to be resident in the State for a minimum period to be eligible to purchase a house here.

You could have exemptions for certain developments such as apartments to facilitate the rental market. It would also help to have stronger and more effective regulation of house sales by estate agents and property developers.

Not wanting to be critical of estate agents, but their role in seeking the best price for the vendor makes them a big contributor to house price inflation. Accordingly, we need to take a serious look at and change the way houses are sold in this country, and curtail the existing practice of auctioneering.

This practice only exacerbates house price inflation and often puts the price of housing beyond the reach of many young people trying to get a place for themselves.

The Government should examine methods used in other countries such as fixed pricing systems, single written bids and other measures to ensure transparency, prevent artificial bidding wars and protect house buyers. – Yours, etc,

JOHN FANNING,

Malahide,

Co Dublin.