House prices could rise 25% by 2020

A new report is predicting house prices could rise by up to 25% by 2020.

New ESRI research says strong economic growth and the slow pace of house building will fuel price rises.

But it says the Irish housing market is not overheating and properties are not over-priced compared to other countries.

Kieran McQuinn from the ESRI is author of the report.

He said: "This is mainly related to the improvement in economic conditions in particular I suppose to developments in the labour market where we have seen a persistent fall in the unemployment rate over thr years.

"Given the apparent sluggish response of housing supply, when you have such strong demands that inevitably means that prices are likely to increase."

The Economics and Social Research Institute is predicting that house prices could rise by 20% by 2020.

Professor of Economics at the ESRI says many renters are trapped as high rents mean they can’t save enough of a deposit under the Central Bank rules.

He said: "You can really understand it from people's perspectives that on the one hand if you're paying out huge amounts of money on rent, it means that your ability to save is really being hampered and of course with the macroprudential rules they require certain deposit levels, so it is very difficult for people to save for deposits."


Related Articles

EU sees further rises in house prices and rents

House prices increased by 2% in September leading to 12.8% rise annually

House prices rise by more than €50 per day since last year

Call for State loans to replace Help-to-Buy scheme

More in this Section

Sinn Féin votes in favour of going into Government as junior party

Gardaí make one arrest in €25k drug seizure in Meath

Latest: Galway Councillor calls for investigation after 20 people trapped on big wheel for three hours

Mary Lou McDonald says Sinn Féin are 'ready' to go into power with another party


Today's Stories

First licence granted to treat pain with cannabis

Barry Walsh quits Fine Gael role after ‘trial by media’

EU chiefs back Irish threat to veto Brexit trade talks

Violent teen ‘will harm girl he defiled’ if bailed

Lifestyle

A towering achievement: Exploring Irish castles and beautiful buildings

Books that belong on the gardener's bookshelf

The domestic flash of Francis Brennan

John Wilson touring with music made with Rory Gallagher in Taste

More From The Irish Examiner