House prices could increase wage bills

EMPLOYERS will face rocketing wage bills unless the government acts to make housing more affordable, the Small Firms Association (SFA) warned yesterday.

The IBEC-backed small business group said reports of a stabilising housing market were “just an illusion” and that the government needed to help those on low and medium incomes to buy their own homes.

SFA director Pat Delaney said the high cost of housing in Ireland was a “significant barrier” in the labour market and made it harder for employers by pushing up wages and salaries and discouraging people from moving to take up a new job.