Increases in Irish house prices to be biggest in EU

Irish house prices will see the biggest increases anywhere in Europe this year despite the Central Bank’s hotly debated interventions to curb inflation in the market.

According to two reports into the housing market, the sector is in a period of sustained recovery. Goodbody Stockbroker’s economist Dermot O’Leary says it will take until the end of this decade before housing supply matches demand.

Supply levels are 88% below peak levels and at 11,000 units completed last year, fewer than half of the 30,000 units needed to meet supply. The new Central Bank rules on loan-to- income and loan-to-value will cause a moderation in mortgage lending in the near term but will lead to medium term stability, he added.