A new tax policy could be the catalyst that helps young Bermudians get their feet on the housing ladder, it has been claimed.

A change in the tax charged to non-Bermudians who wish to buy houses could be just the spark that would free up much property on the Island, according to a property professional.

Cris Valdes-Dapena, a senior partner in The Property Group Ltd., believes that allowing overseas buyers to pay the licence fee charge on property purchases over time could fix part of the Island's housing crisis.

"Such solutions would both shift some of the non-Bermudian demand into the limited sector of the market available to them, without increasing that limit, and increase the mid-range stock of housing for all concerned,'' she said.

"We cannot change the basic realities of 22 square miles of land and a growing economy.

"But right now, we see a market that is out of balance -- we have a two-year supply of houses available to non-Bermudians and a flat condo market. While young Bermudians are bearing the brunt of an excess of demand in the rental market.'' Speaking to Hamilton Rotary Club, Ms Valdes-Dapena said in addition to licence fee changes, the policy of not allowing Bermudians to build new condominium developments had `prematurely embalmed' the market.

A re-defining of the policy, where townhouses and cottage developments could provide an alternative to mid-range executive housing, which is currently over-subscribed, would increase saleable units and rental homes.

With the rise in demand in the last five years for high-quality homes by the international business community, coupled with the licence fees charged on purchases -- 22 percent for houses and 15 percent for condos -- had had a massive impact on the market, she said.

Employers, land owners, Bermudian tenants and would-be buyers had all been hit by the policy, whereas the winners were landlords and owners who reap the benefits of a buoyant market.

"Since our long-term stability hinges more on creating new wealth rather than enhancing that which is already established, I don't believe that these benefits are sufficient to outweigh the costs incurred as a result of the current situation.'' Effectively it had meant that non-Bermudians have been pushed into the rental sector, where they competed directly with Bermudians -- in a market where rents have spiralled.

But she added: "It takes only a very few people entering or leaving any part of the real estate market to significantly alter it.

"We don't have to do much but we do have to do it in time to help today's generation of young Bermudians become full participants in our thriving economy.'' TAXES TAX REAL ESTATE RE