Irish Prime Minister Leo Varadkar has denied claims that Ireland has a land bubble problem.

Last month, National Treasury Management Agency (NTMA) Chief Executive, Conor O'Kelly, said there was a clear "market failure" when he was questioned during the final Dail Public Accounts Committee.

At his summer media briefing, Mr Varadkar there was a significant amount of derelict land not being made available for development but denied there was a land bubble issue.

"I haven't seen convincing evidence of a land bubble at this stage but it's something we have to look out for," he said.

"We're making some progress on housing but not enough, we're a way off from where we want to be and need to be.

"I do think there is a lot of land that is not being made available for development quickly enough and that's why we brought in the derelict site levy and vacant site tax, for example, so that more land can be made available. Its also why we're setting up the Land Development Agency, which will give the agency powers to acquire land and develop it.”

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However, Sinn Féin Housing spokesperson Eoin Ó Broin said the Taoiseach's comments show that his government "does not understand the housing crisis".

"In April a report published by the Department of Housing a 'Review of Delivery Costs and Viability for Affordable Residential Development', acknowledged that the cost of land is a serious problem and that state lands should be utilised better for residential development," he said.

"Two reports published by the Institute of Chartered Surveyors one housing construction costs and one last year on apartment construction costs both State that land costs have an impact on viability.

"In May 2016 the Institute of Chartered Surveyors report "The Real Cost of New House Delivery stated: 'It is clear that there is a serious financial viability issue in the provision of housing and with particular emphasis in urban areas, where the demand is highest, but where land prices are also at their highest'.

"The Real Costs of new Apartment Delivery report from April 2017 stated that site costs included in this report ranges from €33,000 to €125,000 per apartment. For example, of the total development costs of a two bed apartment in the suburbs the site purchase cost accounts for 16% or on average €70,000."

Continuing, Deputy Ó Broin said the Taoiseach may be disappointed is he is hoping that that the CPO powers of this new land development agency will be a "game changer".

"Local Authorities already have CPO powers and some like Louth County Council have used them well, however it is an expensive tool," he said.

"To counteract the increasing unaffordability of housing especially in urban areas the State needs to use the land it has and build affordable homes on it."

(LM)