Fine Gael has called for the Minister for Finance to abolish stamp duty for first-time home buyers on secondhand homes in next month's Budget.
Senator Sheila Terry said in the Seanad this morning Mr Cowen should remove the tax on houses up to the value of €400,000.
"It is high time that first-time buyers were incentivised and not penalised when seeking to get their foot on the property ladder," she said.
She said the problem of affordability was particularly acute in Dublin, where prices are escalating beyond the reach of many young couples, forcing them into long commutes.
"I believe this would be a good initiative to revitalise older communities," she said.
Ms Terry also said families seeking to move to larger homes because growing families are being penalised because they have to pay the same stamp duty as investors buying properties to rent out.