House prices too low to prompt new builds: Abbey

House prices outside of Dublin are “too depressed” to trigger widespread new building by developers, leading group Abbey has warned.

The Co Meath-based housebuilder is relatively bullish about the prospects for the Irish market, but warned, yesterday, that there remains a lot of work to do and the recovery could easily be blown off course.

“There needs to be an improvement [in conditions] 30 miles out of Dublin, where prices need to go up and are probably still too depressed to trigger building at current prices,” said Abbey executive chairman, Charles Gallagher.