Property speculators should be taxed out of existence to keep prices down, warns Ahern

PROPERTY speculators trying to make a fast buck in the Irish housing market would be better off dealing in oil and cocoa beans from now on, the Minister of State for Housing said last night.

Noel Ahern warned that people who trade in houses and apartments or buy land to sell on to developers should be “taxed out of existence”.

Mr Ahern was speaking at the launch of an information handbook on affordable housing, at Government Buildings.

The publication was compiled by the Affordable Homes Partnership which was established last year to coordinate and promote the delivery of affordable housing in the greater Dublin area.

Mr Ahern said up to 90,000 homes could be built this year, but such development doesn’t seem to be curbing the cost of housing.

“There is something wrong if the prices keep going up,” he said.

“Some form of taxation would help, as output alone does not seem to keep prices down.

“There are people buying land in the short term, not to build on it but to sit on it for a few years before selling on to some developer.”

Mr Ahern also referred to people buying houses and apartments off the plans and “never taking the keys but selling on the contract”.

“I don’t think those people are giving any added value to the whole issue.

“I, personally, would like to see those people taxed out of existence,” he said.

“People who see the demand, move in to make the fast buck. They should be playing the commodities market in the London Stock Exchange on oil or cocoa beans or whatever, rather than with houses.”

The Government said that 8,000 families have moved into affordable homes in the past three years and the target was for 17,000 affordable homes over the 2007-2009 period.

Environment Minister Dick Roche said the handbook would help people determine whether or not they are eligible for affordable housing.

As a rough guide, a single person earning up to €55,000 a year or a couple earning a total of €75,000 are eligible for the scheme.

The Affordable Home Handbook is available at all local authorities or can be downloaded online at

www.affordablehome.ie.

Affordable Homes Partnership chairman Des Geraghty said more affordable homes would deliver price stability to the housing market.