The State’s advisory body on housing is in favour of keeping the help-to-buy scheme.
There are fears the €20,000 grant for first-time buyers of new-builds could be driving up property prices.
The Government’s housing advisor also wants developers who build ‘low density’ homes to be penalised.
The Housing Agency says there should be a levy on sites where ‘high density’ building would have been possible.
“In the major urban areas of the cities we do need housing,” said CEO John O’Connor.
“Our population has changed, household size has changed, and we need a lot more houses.
“What we’re suggesting is that higher density housing should be encouraged.”