House prices fell almost 5% in 2001

House prices in Ireland fell by 4.63% in 2001, according to figures released by the Sherry FitzGerald estate agents today.

The figures show that prices fell by 0.07% during the first half of the year and 4.56% in the second half.

Marian Finnegan, the chief economist at Sherry FitzGerald, blamed the Government for the fall in prices.

“The results of the barometer reflect the impact of a loss of consumer confidence, which was instigated by significant and miscalculated Government intervention in the market over the past three years,” she said.

Ms Finnegan said the current high level of rental inflation – approximately 11% countrywide and much higher in Dublin - is further evidence that government interference in the housing market was misguided.

However, she welcomed the restoration of mortgage interest relief and the change in the rate of stamp duty contained in the budget last month.

“The turnover of property should now increase,” she said, “facilitating a stabilisation in prices in the opening months of the year . This is good news for all participants in the market place and good news for the economy overall.”