Central Bank warns of potential for ‘significant’ house price increases

Governor Gabriel Makhlouf told reporters the problems for supply in housing were already longstanding going into the Covid crisis.

The Central Bank said a paradox of household savings may fuel the rising house prices.  Picture: Eamonn Farrell/RollingNews.ie

The Irish economy is by-and-large weathering the Covid crisis, but there is a risk that housing shortages will fuel significant house price increases in the coming months, the Central Bank has warned.

The warning is made in the regulator’s latest financial stability report which sets out the risks and the resilience of the Irish economy, as well as the financial health of companies, households, and its banks.