We've been good all year - Charlie's next budget is eagerly awaited

The entire property market is now holding its breath until Charlie McCreevy unveils his budget proposals on December 5th. With housebuilding sites being closed down and operations being scaled back on many others, there is a general expectation that concessions are on the way in the hope of cranking up the market again. It will take no less than a full restoration of mortgage interest relief, or a reduced rate of tax for rental income, to bring investors back to a market that is slowing down by the week. Mr McCreevy will be well aware of the slow down, having been petitioned directly and forcefully by groups of housebuilders in recent weeks. They have all pointed out that although there is now a plentiful of supply of starter homes in most built-up areas, the buyers are in short supply and they are not in a mood to buy in case prices slip further. Like most industries, the building business is extremely sensitive to economic trends, and while the Government can do little about high-tech industry woes it can restore a degree of business confidence to the construction industry. Sadly this comes after an estimated £900 million (€1.142 billion) has been spent on holiday homes in Spain and other Continental countries. How absurd for a country which only recently got on its feet. It is not that long ago that the Revenue had a team of inspectors at Dublin Airport, checking the pockets of race-goers heading for Cheltenham. We certainly have a short memory.