Sir, - I write regarding the obscene spiralling of the prices of modest three-bedroom houses, most of them for young first-time buyers. When I was involved in the house-building industry during the 1970s and 1980s there was a government-regulated system in operation covering the prices charged for new houses. If a builder intended building, say, 20 houses, he had first to apply to the Department of the Environment and forward an application form specifying the price which he intended charging for these houses. The application form was for obtaining a Certificate of Reasonable Value for the houses. This certificate was necessary to obtain the first-time buyer's grant and also the Construction Federation's six-year structural guarantee for the house being purchased.
This system worked satisfactorily for many years but for some reason it was discontinued some time in the 1980s.
I think the time has passed when some such a scheme should be brought into operation. The greed of many builders has grown to such an extent that something drastic needs to be done. I have seen the price of a modest house increase by £20,000 in the course of a year. - Yours, etc., Finbarr O'Brien,
Glenview House, Tower, Blarney, Co Cork.