Auctioneers today called for the abolition of Stamp Duty for all first-time buyers.
With the fourth interest rate rise in a year announced last week, chief executive of the Institute of Professional Auctioneers and Valuers (IPAV), Fintan McNamara, expressed deepening concern about the effects of continuing rises in mortgage repayments.
Mr McNamara said he would be lobbying Minister for Finance Brian Cowen ahead of next December's budget and pointed out that the property market has boosted Exchequer coffers.
"Recently released figures show that the Government brought in a staggering €1.9 billion in Stamp Duty so far this year, an increase of 43 per cent on the same period in 2005," Mr McNamara said.
He also called for the widening of Stamp Duty bands "to give young people a fair chance to get on the property ladder."
He pointed out that the average cost of a house in the greater Dublin area was close to €500,000, while the exemption only extended to houses valued at a maximum of €317,500.
Changes to the Stamp Duty regime would be self-financing because it would stimulate the market, he added.
"This Government has had more than its fair take from residential housing. When combined with the VAT take on new homes, there is a total imbalance on the amount of Exchequer funding coming from one sector," Mr McNamara said.
However, the booming housing market, which accelerated this year after an a slow-down in 2005, has led to deepening concern about the potential for a property crash.
The Central Bank recently warned the economy was overly reliant on the property market and with interest rates expected to rise further, Mr Cowen will be reluctant to impose any measures which could increase upward pressure on house prices.