There is a danger of a second “bubble” if house prices fall too far below boom-time peaks, an expert has warned.

Residential rents in the main cities could go up by as much as 14% by 2013, it has been claimed.

Estate agents Savills have today pointed out that the Government’s changes to the Stamp Duty regime mean that potential first-time house buyers could pay €2,500 more today than had they bought the same property on Monday.