Vat cut proposed to tackle house price rise

The Society of Chartered Surveyors has issued a 10-step strategy to address the unsustainable inflation in the Dublin housing market and the supply shortage fuelling it.

The organisation yesterday released a plan to increase supply and curb demand in the Dublin market which has seen a 24% increase in house prices in the last 12 months.

Among the measures recommended by the group are the establishment of a builders finance fund; a reduction of Vat to 5% on new home construction for two years; and encouraging Nama to license developers to build sites in strategic locations.