AIB: House prices to keep rising

STRONG demand is pushing the price of houses higher than expected, according to a major new study by AIB.

It warns house prices will increase 7% this year, driven by strong economic growth, low interest rates, inward migration and full employment.

Up to 77,000 houses will be built again in 2005, equalling last year's record, and the reports says the demand will not let up until 2008.