Labour blames Govt for rise in house prices

The Labour Party has blamed the Government's housing policy for last year's 20% rise in average house prices.

Sherry FitzGerald estate agents said low mortgage rates and first-time buyer demand in Cork and Dublin forced up prices, but Labour said the Government must shoulder some of the blame.

Party spokesman Eamon Gilmore said the Fianna Fail-Progressive Democrats coalition has introduced measures to make it easier for investors to purchase houses, thereby reducing the supply of houses for non-investors.