How low can house prices go?

Sir, – Surely everyone now realises that the “wealth effect” Dan O’Brien refers to (Weekend Review, October 1st) actually amounts…

Sir, – Surely everyone now realises that the “wealth effect” Dan O’Brien refers to (Weekend Review, October 1st) actually amounts to insupportable indebtedness. At the end of his article, Mr O’Brien touched on a far more useful proposition: that a thriving and sustainable economy could be raised from the collapse of the property bubble by promoting permanently low commercial rents and low property values. These are achievable through reductions in the tax allowances for rent paid and through regulating permissable equity values. – Yours, etc,

MARY MONTAUT MA Town Planning,

Mount Pleasant Villas,

Bray, Co Wicklow.