House prices set to rise as demand outstrips supply

HOUSE-HUNTERS are facing a price increase this year because demand is outstripping supply, while a shortage of zoned land is adding to the difficulties.

The warning came from the chairman of the Cork branch of the Construction Industry Federation (CIF), Joe O’Brien, who said that there were several factorsinvolved, but the mostimmediate one was the number of planning permissions refused in the region.

“The number of units granted planning permission in the 12-month period to September 2006 was down 20.6% in Cork on the corresponding period to 2005,” Mr O’Brien said.