Labour promises legislation to cap land prices

The Labour Party has vowed to publish legislation later this year capping the price of building land in an effort to bring spiralling house prices under control.

Party leader Pat Rabbitte last night slammed "speculation and profiteering" by wealthy and powerful property developers and said local authorities should have the power to make compulsory purchases of building land at reasonable prices.

He said the Labour Party believed that there was no constitutional barrier to legislation capping the price of land, despite claims by some people in government that property rights were sacrosanct.

Mr Rabbitte also described the Progressive Democrats' opposition to a cap on land prices as "right-wing and selfish".