The slowdown in house-price growth in Dublin is masking a continuing crisis in the housing sector according to Property Industry Ireland, the Ibec group that represents businesses working in the property and construction sector.
Referencing this week’s CSO figures, the group claims that while house price increases have moderated, prices are rising faster outside of Dublin than in the capital.
Director at Property Industry Ireland, Peter Stafford said: “In Dublin, house prices increased by 0.7% in July, while outside of Dublin they increased by 1.2%. This welcome slow-down in prices is not a symptom of a healthy balance between demand and supply, but is likely caused by the impact of the new Central Bank mortgage lending policy.
“The rapid increase in rents in the same periods suggests that potential purchasers are trying to raise deposits or buying outside of the capital where prices are lower. A complete review of Irish housing policy is urgently needed.”