€19bn a year borrowed for houses

A massive €19bn will be borrowed this year from banks and building societies to fund Ireland’s booming property market, according to a new report published today from Bank of Ireland (BoI).

Dr Dan McLaughlin, chief economist with BoI, in his quarterly property review for 2005, said the €19bn in loans is a €2bn hike on last year and there should be no concern that people are borrowing to much to fund new homes.