House prices expected to see 10% rise

BANK OF IRELAND gave property investors plenty to cheer about yesterday as it said two years of sliding rents were at an end and predicted a 10% jump in house prices this year.

The bank’s latest quarterly review of the property market said rents negotiated by landlords had staged a minor recovery this year and were an average of 2% ahead of last year’s figures.

The recovery came after two years of falling rents that had been attributed to oversupply in certain sectors, particularly apartments, that had increased the bargaining power of tenants and allowed them to strike cheaper deals.