IMF: House price rises need ‘close monitoring’

The International Monetary Fund (IMF) has called for a “close monitoring” of the continuing sharp rise in Irish property prices.

Concluding its latest post-bailout visit, an IMF delegation yesterday gave a broad thumbs-up to Ireland’s continuing recovery, but noted the country still faces several challenges. While international corporate tax challenges and Brexit are the obvious external risks, the IMF said domestic concerns still remain. It added that while the country’s “crisis repair” is progressing, it remains incomplete.

As well as calling for the introduction of a “well- structured” land tax on vacant sites, a speeding-up of loan restructuring for distressed but viable construction firms and a further streamlining of the planning process, the IMF has welcomed the planned review of the Government’s Help-to-Buy scheme, which it said may add to demand pressures.