Leo Varadkar warns over surging house prices

Social Protection Minister Leo Varadkar has warned that the surging cost of houses in Ireland risks forcing more people into arrears.

Property website daft.ie reported rises across all areas of the country in its latest update and claimed house prices will rise by 5% this year.

Speaking at the launch of a €15m Government initiative to help an estimated 80,000 unable to repay their mortgages, Mr Varadkar said the Daft index “does carry concerns for house prices and rent as well”. However, he reiterated that Fine Gael believes the best way to resolve the situation is to increase supply of homes.

Mr Varadkar spoke as he and Tánaiste Frances Fitzgerald launched the Abhaile mortgage arrears resolution service. The nationwide scheme aims to spend €15m over three years to give an estimated 80,000 people with distressed mortgages — including 35,000 in arrears for two years — financial and legal advice.

Both ministers noted that while the number of mortgage arrears has fallen from 12.9% at the depth of the recession to 7.8% today, thousands of people are still living with the risk of being made homeless.

More than 1,000 people have accessed the Abhaile service since it was set up in July.

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