Call for ‘punitive’ taxes to ease housing crisis

The Government will need to start considering “punitive” tax measures to help resolve the worst of the housing crisis because current policies are not working, according to Alan McQuaid, chief economist at Merrion Capital.

Mr McQuaid said despite warnings that demand-driven incentives such as the help-to-buy scheme, announced by then finance minister Michael Noonan in the budget last October, were making matters worse.

He said hefty tax sanctions, either through introducing increased levels of property tax or by other means, should instead target investors who were hoarding houses.