Residential property investors forced out of the market by the Government's anti-speculative measures have been given some hope of a lifeline by housing minister Bobby Molloy. Appearing at the National Housing Conference in Galway last week, he made a particular point of telling delegates that the Government was keeping housing "under very careful review and was refining its strategies as necessary at a time of unprecedented and rapid development". And if that wasn't enough, he went on to tell his audience that the Government is "committed to listening to all those involved in housing".

Some of those at the conference interpreted his comments as an indication that the Government may restore mortgage interest relief sooner than expected because of the crisis in the Dublin letting market. Apart from forcing investors out of the market, the Government's intervention has also led to a fall in new housing starts since the beginning of the year, a trend that could lead to even fewer housing completions this year than in 2000.

Not surprisingly, some delegates suggested that the Government is being held to ransom by the housing lobby in general. Dublin's City Manager John Fitzgerald touched on this issue, saying there was a possibility that some developers, while continuing to build at comfortable levels, are not inclined to increase output at a time of some uncertainty. He warned that any complacency in the industry runs the risk of further market interventions which might best be avoided in the interest of all concerned. In other words, get your finger out lads - or else.