House prices to continue to rise but inflation to slow, predict consumers

CONSUMERS remain confident that the Irish house price bubble is far from bursting, according to new research from IIB Bank and the Economic and Social Research Institute (ESRI).

The joint survey, which will be published today, found 72% of consumers expected house prices to keep rising over the next 12 months. 21% said they would remain flat, while just 7% expected prices to fall.

But the survey also noted expectations of a slowdown in the rate of house price inflation. Prices were expected to increase by an average of 6.5% in the year ahead, to fall below 5% in subsequent years. Last week saw Bank of Ireland predict house price inflation would fall to 5% this year.