25,000 new builds predicted by 2018

The Irish housing market could reach a sustainable level of around 25,000 new builds per year within the next five years, a rise of more than 180% on current levels.

That is according to Charles Gallagher, the chairman of Abbey, who said the problem facing sustained growth in the sector is not a pricing issue but one of supply, in terms of both finance and supply of new stock.

He said Abbey remains upbeat about prospects in its core markets of Ireland and Britain, after delivering a near 30% annualised increase in first-half profits.