Labour TD for Galway-West, Derek Nolan has said that a recent report showing house prices in Dublin jumping €100,000 in just 7 days is a clear indication that a meaningful policy on housing prices is needed.

Mr Nolan said: "Recent figures from the CSO showed that house prices across the country are up 6.1% and up 14.6% in Dublin, compared to last year. Economists say this is a case of the market re-balancing itself and that prices are still 47% lower than during the boom times.

"Now is the time to start talking about how we view housing provision in our society. Is housing a commodity or a social need? I do not want to see a return to an Ireland where it was accepted that people crippled themselves with debt, just to provide a home for their family. A mortgage that lasted for 35/40 years was a given and was considered the norm.

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"Allowing the market to once again hold dominance in any discussion on house prices runs the risk of repeating mistakes we previously made. The consequence of run-away house prices was not just the catastrophic boom and bust. We also saw huge pressure on inflation from mortgage and rent costs. This resulted in wage demands and a loss of competitiveness. And crucially, house price inflation saw a huge diversion of wealth and capital into housing that could have been used to fuel productive enterprise and sustainable growth in the real economy.

"There is now a shortage of quality, affordable family homes in Dublin and urban areas such as Galway. Lower supply is meeting increased demand."

(CD)