Property market - House boom benefits Government

Housing Minister Noel Ahern really could not have been more blunt when he clearly blamed the financial institutions for deliberately driving up the price of houses by hyping up the market.

His remarks came in the wake of the Central Bank yesterday sending out another warning to house buyers. The bank revealed that mortgage lending rose by €2.1 billion in March, which amounted to the second highest increase on record.

According to the bank, home-buyers are continuing to borrow huge sums at some of the highest-ever levels.