Rising costs and higher interest rates 'could affect viability of housing projects' 

Although house price inflation is falling, Banking and Payments Federation Ireland warns that affordability remains an issue — with asking prices 127% up from a decade ago 

There were 6,716 new completions in the first three months of 2023 — up 19.1% compared to the same time last year. Picture: Andrew Matthews/PA

Increasing supply is moderating house price inflation — but rising costs and higher interest rates could impact the viability of housing projects over the next few years, a new report by the Banking and Payments Federation Ireland (BPFI) has found.

According to the BPFI’s new housing market monitor for the first three months of the year, house price inflation is falling — but affordability remains an issue with asking prices now 127% higher than they were a decade ago.