Call to end mortgage tax relief

THE influential think-tank, the Organisation for Economic Co-operation and Development (OECD), has urged the Government to scrap mortgage-interest tax relief or face a fall in house prices.

In a report on the Irish economy, the Paris-based OECD said that supports to the housing sector are leading to surging demand that could eventually precipitate a fall in house prices.

With interest rates at record lows, the OECD expects prices to continue rising.