Central Bank is not to blame for housing crisis

The usual Irish political hypocrisy on housing is returning to historic levels.

While government TDs and ministers complain that a rule requiring 20% deposits will “lock young people out of housing”, it is government policy that is largely responsible for high house prices in one of the least built-up countries in the OECD.

We have development levies on new housing, yet no effective property tax or land tax; VAT on housing construction; effective limits on competition in the Irish bank market driving mortgage rates much higher than most EU countries; effective prohibition on eviction of mortgage defaulters restricting supply and forcing interest rates higher; market manipulation to recapitalise the Irish banks and protect the taxpayer (or their pensions); no reform in the rental market.

There is no end to the hypocrisy.

It is government policy to inflate house prices and this more than anything, locks young people out of housing.

Hugh Sheehy

Marine Drive

Dublin 4