The housing market squeeze continues. The latest survey from the Society of Chartered Surveyors Ireland (SCSI) shows that homes are increasingly unaffordable for those on average incomes . A survey of members of the institute – estate agents, auctioneers and surveyors – shows, worryingly, that just 6 per cent feel houses are now selling at a fair value. In other words, buyers are stretching themselves ever further to purchase properties which market professionals feel are overvalued. Despite this, prices continue to rise, with a further 5 per cent increase anticipated this year on average by the institute’s members. Inadequate levels of supply and strong demand continue to push the market higher. The SCSI analysis shows that three-bed semi-detached houses in the Dublin commuter counties are increasingly out of reach for two income couples on average incomes. However, there are still enough potential buyers on higher incomes to keep prices rising.Figures from the Banking and Payments Federation Ireland, also published this week, show the number and average size of mortgages both continued to rise in the first half of the year. The value of first-time buyer mortgage drawdowns rose by 10.5 per cent year on year to ¤4.1 billion, the highest level since the data series began in 2003. And this is happening despite mortgage rules which limit the size of the loan in relation to the price of the property and the income of the borrower. The Government is spending billions of euro each year through various channels to try to increase supply and help buyers. It has had some modest success in terms of increasing delivery numbers, but progress has been slow and there is little chance of the target of 300,000 new homes being built in the term of the Government being met. The capacity of the sector to build at scale remains in question, as does the ability of the State apparatus to manage its many interventions and ensure that massive spending yields results. The State needs to address the issue forensically, rather than continuing to throw money at the housing issue in the hope that some of it sticks. While State buyer supports are intended to boost supply, there is a legitimate concern that they also push up prices. They also encourage the spread of development into commuter counties, in part contrary to national spatial goals. Further increases in demand schemes thus need to be addressed with great care – or avoided. The Government also needs to analyse the vast number of supply-side schemes on which billions of euro are being spent to see which are working and which are not. Capacity increases in local authorities and the planning system remain vital. Ireland is engaged in a giant housing experiment and, as well as building on what works, it needs to address the areas of ongoing failure.