Dublin’s light rail system has given nearby property prices a major boost, it was claimed today.

HOUSE prices in Dublin have been driven up because of a shortage of family-sized homes in the city.

The supply of second-hand houses has gone up 40% since last year.

FEARS of overheating in the property market were heightened yesterday after new figures showed that borrowing remains at a 20-year high.

Prices of second hand residential Dublin property valued at €700,000 and over have risen by an average of 8.74% in the last three months, well above last year's rise of 2.6% in the sector in the same period.

FALLING rents and an increased supply of rental accommodation have resulted in a slowdown in the buy-to-let market over the last year, but banks continue to report strong demand among borrowers.

HOUSE prices in Dublin grew by less than 1% in the final three months of last year, but the average home in the city now costs just shy of €340,000.

There has been a slight reduction in the rate of increase of Dublin house prices.

THE pace of house price growth is set to slow over the remainder of the year but lower interest rates and sheer demand will ensure valuations will continue to rise, experts believe.

HOMEOWNERS are facing a property market crash where the value of their house will be worth 20% less than what they paid for it, an economic report has warned.

Second-hand house prices in Dublin rose by 7% in the second quarter of this year, according to Douglas Newman Good’s latest House Price Gauge.