Sir, – Alan Ahearne (“More homes in right places needed”, April 26th) is one of those people of whom it can be truly said he kept his head while all around were losing theirs.
His succinct remarks on media-driven comment during the boom/bust of recent years should be burned into the minds of all aspiring journalists, editors, economists and commentators: “ ... some of the drop in house prices nationwide of more than 50 per cent from peak to trough may have been in response to the excessive pessimism about the country’s economic future that became a feature of the national debate during the height of the crisis. For a while it seemed that commentators were tripping over themselves to produce the gloomiest predictions. Indeed, economic commentary has generally been pro-cyclical over the past decade, exacerbating both the boom and the bust.”
His warnings about what might go wrong and what should now be done are equally succinct and wise: “The biggest concern is that today’s heady gains in house prices in some places become embedded in expectations of future prices.”
Therefore, “ramp up supply in the right places” (ie cities) and use the financial policy tools available to “ensure that prices in, say 2020, will not be too far above today’s levels”.
As simple as it is brilliant. Let’s hope he is listened to this time! Yours, etc,
PHILIP O’CONNOR,
St Peter’s Terrace,
Howth,
Dublin 13