The housing market needs an immediate and strong signal of the State's willingness to act, the chairman of the Irish Mortgage and Savings Association (IMSA) has said. In the chairman's address of the IMSA annual review, Mr Pat O'Reilly said that such a signal would include further substantial rezoning in the Dublin area; immediate implementation of the supply side, infrastructure and planning measures proposed in Bacon three; and more extensive use of compulsory purchase powers. Mr O'Reilly pointed out that action of this kind involved many risks, not least objections by local communities and special interest groups. He said these risks must be weighed against what the IMSA sees as the significantly greater risk of letting the situation deteriorate further.

"Already, too much time has passed and too much damage has been done to individuals and society in general from houseprice increases. Real action is now required to change expectations."