Central Bank is not to blame for housing crisis

The usual Irish political hypocrisy on housing is returning to historic levels.

While government TDs and ministers complain that a rule requiring 20% deposits will “lock young people out of housing”, it is government policy that is largely responsible for high house prices in one of the least built-up countries in the OECD.

We have development levies on new housing, yet no effective property tax or land tax; VAT on housing construction; effective limits on competition in the Irish bank market driving mortgage rates much higher than most EU countries; effective prohibition on eviction of mortgage defaulters restricting supply and forcing interest rates higher; market manipulation to recapitalise the Irish banks and protect the taxpayer (or their pensions); no reform in the rental market.