Pessimism 'the biggest threat to housing sector'

IIB Bank says a sharp fall in consumer confidence is now the biggest threat to the housing sector in Ireland.

In a report out today, the bank says the market has reached a critical point and measures are needed to help turn it around.

It claims that, while rising interest rates are the main cause of the slowdown, public pessimism is fuelling the problem.

IIB says the Government should increase mortgage interest relief to ensure there is no unnecessary hard-landing for the sector.