Land value cap ‘will not cut house prices’

THE Government’s plan to cap the value of development land will not result in a reduction in house prices, it was claimed yesterday.

Dublin assistant city manager Brendan Kenny said land prices were not the sole contributor to expensive housing, adding that there were many developments of 300,000, or 500,000, houses where land was bought at low cost.

"It's sheer demand that's making house prices so high. There's still a huge gap between supply and demand," he claimed at the Irish Council for Social Housing conference, in Tralee.