Rise in house prices to bring levels close to 2007 peak

Irish house prices are set to rise by 9.4% this year and by a further 20% up to 2019, bringing levels close to the peak reached in 2007.

According to a forecast by Davy stockbrokers, the cost of houses will rise by 5.2% next year and by a further 4.5% in 2017.

Davy notes that house price growth slowed in the first two months of the year following the introduction of new Central Bank mortgage lending rules and the end of capital gains tax exemptions.