Analysts: House prices to fall 60%

A 60% fall in house prices from their peak cannot be ruled out as analysts predict a larger-than-expected drop next year.

NCB Stockbrokers also believes that Ireland will not lose its corporate tax rate but said the country will not be able to fund itself entirely on its “own two feet” come 2014 and will require further EU assistance as a result.

The latest Reuters survey of Irish economists predicts that house prices are likely to continue falling for the foreseeable future. The poll predicts that house prices will decline by a further 11.8% in 2011 and 5.4% in 2012. However, Bloxham thinks the fall will be 12.5% this year and 7% next year.