'Empty-nesters' tax breaks 'would free-up family homes'

There are calls for a tax incentive scheme to encourage so-called "empty-nesters" to trade down and free up much-needed family homes in Dublin.

The latest housing market monitor from the Irish Banking Federation reveals an increase in activity across the property market.

Despite this, it has stopped short of saying we are in full recovery mode.

It is also playing down talk of a property bubble in Dublin.

"The headline rate suggests there has been a very sharp increase in price sin Dublin - that is off a very low base," said Investec chief economist is Philip O'Sullivan.

"There is a very low volume of transactions, with many transactions - up to 40% - involving executor sales.

"So we think that that's going to unwind over the coming quarters.

"So we would see the Dublin rate of inflation to start moderating from here."