Developers and Auctioneers are calling for a cut in the VAT rate so more new houses are built to alleviate the housing crisis.

The Daft.ie housing price report says house prices across the country rose last year – by an average of nearly 8%.

While My Home.ie found that the number of available homes for sale fell by almost 7% in the year.

The Institute of Professional Auctioneers and Valuers says at the minimum, the VAT rate should be cut so it’s cheaper to build houses.

But Economist for Daft Ronan Lyons says it won’t solve the problem; “I think the cut in VAT will bring a small fraction of the country from not viable to viable.

“In places where it is already viable that will just push the prices, it will mean more money for the builders and in places where it is not viable before, afterwards, it will mean no difference at all.”