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NAMA in bid to solve Dublin's home crisis

NAMA has begun efforts to tackle Dublin's chronic housing shortage by asking receivers to identify land banks suitable for immediate development.

The agency has requested its panel of receivers to focus on sites it controls that already have planning permission.

An emphasis is to be placed on tracts in Dublin, Kildare, Wicklow and Louth. It comes after the Government asked the agency to help solve Dublin's severe lack of supply.

The capital has an estimated demand for between 8,000 and 10,000 new homes a year, but only a fraction of that amount is being built.

Last year, there were only 1,300 completions in Dublin.

NAMA has appointed receivers to more than 2,300 assets nationwide, putting it in prime position to assist in kick-starting new construction projects.

As so many builders became insolvent in the property crash, the State agency is in a far better position than the private sector to drive development.

The supply problems have been blamed for a 25pc year-on-year jump in prices. A report by estate agent DNG claimed costs in the capital were rising by around €220 a day.

Prices in Dublin are now increasing at more than seven times the rate of the rest of the country. It has led to fears the market is once again in the midst of a bubble.