The employers group, IBEC, has recommended that agricultural lands along key public transport routes should be subject to compulsory purchase orders (CPOs) so they can be zoned and serviced as a means of alleviating the housing crisis.

Economist Mr Aebhric McGibney said the CPO mechanism was not being used to its full potential and its usage along main transport routes could form part of an integrated approach to develop affordable housing within commuting distance of the major cities.

This would favour high density zoning in a typical star-shape, following transport routes from the city.

He said there were now real concerns that rapid house price increases would trigger wage inflationary pressures.

IBEC, in its pre-Budget submission, also states that there should be a Government review every five years of zoned, serviced lands which have not been developed, sometimes because landowners are speculating on the future value of their lands.

"That would stop people sitting on zoned, serviced lands," Mr McGibney said.

He added that, particularly in the Dublin area, there was a problem in relation to the release of zoned lands.

IBEC added that local authorities should be required to have a 10-year supply of zoned lands.