Fall in house prices on cards, economist warns

HOUSE prices could start to fall over the next 12 months if rental income continues to decline, a top economist warned yesterday.

The cut of 0.25% in interest rates will not, however, cause a house price bubble but there is a risk prices will “soften”, warned NCB Stockbrokers senior economist Eunan King.

Lower interest rates overall will be good for the economy but Mr King said the rental market was already under severe pressure and that could trigger some fall in the price of houses.