State ‘should cover drop in property prices’

THE state should cover the cost of any future drop in the value of new properties being purchased, a leading economist has said.

Peter Bacon, an adviser to NAMA and author of various housing reports, said this was the “only way” to encourage people who want to buy properties, but who fear prices will fall even further, back into the market.

Mr Bacon, said the Government had failed to take the necessary action to reduce the supply of housing, including the demolition of ghost estates.