House prices to rise 5% over next 18 months, reports Moody’s

Irish house prices should rise by up to 5% over the next year and a half, as mortgage arrears levels continue to slowly decline, international credit rating agency Moody’s has forecast.

In a report on Ireland’s housing and mortgage markets, published today, Moody’s said that while levels of mortgage arrears are declining, the number of borrowers in negative equity remains high and the amount of non-performing loans still on the books could pose problems for the banks.

“The favourable economic environment in Ireland and the related recovery in house prices have improved Irish banks’ asset quality.