House price inflation ‘to slow to 3%’

HOUSE price increases could be as low as 3% next year according to the latest property review from Bank of Ireland.

The bank is also expecting a record 100,000 new homes to be built this year.

The expected 3% rise in 2007 compares with a projected increase of 14% for 2006 and the bank expects the lower house price rise regime to last some time.