Broker warns on policies driving house prices

The Government should focus on solving “structural” issues holding back home building rather than on policies that may lead to higher house prices, according to a major report by Davy.

The Davy report by economists Conall MacCoille and David McNamara predicts large price increases will last longer than previously thought, as a “dwindling” number of homes for sale drive prices higher.

House prices will rise 10% this year and by 8% in 2018, they predict.