The Price Of Houses

Sir, - If the rate of inflation of other commodities had matched that of houses in the last decade, new cars would now cost a…

Sir, - If the rate of inflation of other commodities had matched that of houses in the last decade, new cars would now cost a minimum of £50,000, new computers £10,000 each, a pair of shoes £250 (or £125 each), and you would get no change from £10 for a pint of Guinness. Clearly this hasn't happened because of increased efficiencies, innovation and competition. Therefore one must conclude that the housing market is inefficient, insular and uncompetitive and that the Government should assert itself in an effort to bring the full rigours of free market competition to bear on the sector, including the consideration of becoming a player in the private sector market itself and inviting external construction companies to compete in the market.

The situation where housing land lies idle for anything up to a decade after purchase by a developer until they decide the time is right to build, should be stopped by adding a date by which construction must be commenced when these land banks are sold. Shortfalls in the numbers of construction workers should be made good as they are in the computer and catering industries by hiring Irish and other country nationals from abroad.

A long term disparity between house prices and purchasing power is having and will continue to have a deleterious effect on both the quality and quantity of family life enjoyed by citizens of the republic, so much so that those citizens will have to ask themselves which they value more, their families or their country, and re-locate accordingly. - Yours, etc.,

Brian Harrington, Dangan Heights, Galway.