Property Industry Ireland is calling on the government to make affordable housing a priority in the October budget.

The IBEC group has published its recommendations for Budget 2016, and say Ireland is building half the number of houses needed to meet demand.

Housing Agency figures indicate an extra 5,600 new homes per year are needed in Dublin alone, with this figure rising to 8,900 new homes per year by 2018.

Property Industry Ireland is recommending that VAT charged on houses should be temporarily cut from 13.5% to 9% in order to solve the housing supply issue.

It also says vacant shop units could be converted to appease the housing shortage.

Peter Stafford, director of PII, says many retail units are on the ground floor which would accommodate disabled tenants.

"If there are shops which have never been used which are likely to be vacant for a long time, then we should be looking for measures to try and convert them into residential units" he said.

"Ground floor residential units are of extreme importance for people who have disabilities" he added.

He told Newstalk Breakfast once the supply-demand gap narrows, they can row back.

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