House prices - Soaring debt a recipe for disaster

The decline in the rise in house prices is being greeted as good news. In the first half of this year, the price of houses increased by 2.5%, in comparison with twice that figure during the same period last year.

In fact, the current rise is the slowest since 1996. For generations this country was afflicted by emigration, with young people being compelled to go abroad in search of a living. But in recent years emigration has been strictly voluntary.

People have actually been migrating to this country in unprecedented numbers, and the combination of these two factors has led to an unprecedented demand for new houses among young people. The average age of new house buyers is just 30, and 90% of those purchasing news houses are under 40 years of age. As many as a fifth of those young people are dependent on help from parents, who have been providing up to €15,000 to help with the finances.