House prices predicted to rise further, according to Central Bank

There is no end in sight to the rise in house prices, according to a mortgage adviser.

New figures from the Central Bank predict a 5% increase over the next few months - with prices already up 12% this year.

The rise is further restricting buyers, and experts say it is putting prices almost beyond reach.

Things are not expected to get any better for potential homeowners.

"Rental yields have a strong relationship with capital values - in other words, the price of houses - as they are continually pushing up and staying strong there is money all over the world which can come to Ireland and buy up those assests.

"So why wouldn't money that is coming from a German pension fund be able to come here and buy a load of houses?

"And that's the mistake because people think that mortgages are the only thing that drives the property market and it's nonsensical."

Digital Desk

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