KEY POINTS:
Imposing a capital gains tax on housing has not stopped rapid price rises elsewhere and won't work here either in the present circumstances, says the Employers and Manufacturers Association (Northern).
"House prices have increased rapidly throughout the western world except where the supply of new houses has met or exceeded demand, as in many parts of the US," CEO Alasdair Thompson said.
"Neither can big wage increases help catch up with demand as the Council of Trade Unions is suggesting. All that would do is boost inflation and interest rates.
"Demand exceeding supply is the main driver of house price rises, exacerbated by excessive local government practices and charges", he said.
