Leading economist hits out at Lenihan on house price claim

A LEADING economist has taken issue with Finance Minister Brian Lenihan’s claim that people can now buy houses in confidence as prices have become realistic.

Prof Karl Whelan of University College Dublin said most people would be “wary” of such claims given the problems affecting the market, such as mortgage interest rate hikes, falling wages and worryingly high levels of unemployment.

“Perhaps the minister sees part of his job to ‘talk up the economy’, but, unfortunately from the perspective of most people who are thinking of buying a house, there’s a lot of negative factors still coming down the road,” Prof Whelan said.