Homeowners pay €4.5bn for second properties

HOMEOWNERS spent €4.5 billion this year buying a second property or a holiday home, figures from the State’s economic think-tank have shown.

The Economic and Social Research Institute (ESRI) report estimates 20,000 of the 70,000 housing completions in 2004 consisted of second houses to rent or holiday homes in rural or coastal locations.

This year is expected to be the 10th successive year of record house-building, but the Quarterly Economic Commentary cautions any reduction in 2005 could hit economic growth.