First-time buyers face spiralling crisis

HOUSE prices are rising at such an alarming rate that first-time buyers will find it almost impossible to get on the property ladder the country’s largest bank warned yesterday.

This is despite the availability of 35-year mortgages, 100% loans and financial help from their parents.

AIB has forecast house prices could rise by 12% this year and by a further 7% in 2007 before slowing to more modest levels from 2008 onwards.