End in sight for house price inflation’
The Davy report concludes that current housing supply is unsustainable and adds overall employment remains vulnerable to any reduction in house-building, unless the non-residential sector recovers. “Our forecast is for an early end to the recent house price inflation, and for a reduction in the volume of new housing output,” the report’s authors, Colm McCarthy, Annette Hughes and Ernestine Woelger.
They say further rapid increases in house prices are most unlikely. “The risk of a price correction has increased. Locally, any relaxation of restrictive zoning policies, especially around Dublin, should see price pressures reduced sharply,” they add.
