Report Predicts 20% Rise In House Prices Over Three Years

A report by the The Economic and Social Research Institute (ESTI) has predicted a 20% increase in house prices over the next three years.

Sinn Fein Housing spokesperson Eoin Ó Broin TD said the report makes for "grim reading", and urged the government to invest directly in the supply of affordable rental and purchase homes.

e said: "Read alongside the Daft.ie Q3 rent report, showing an increase of 11.2% since last year it is very bad news indeed.

"While the ESRI are correct to warn against easing access to credit, they are naive if they believe supply on its own will remedy the situation. As we saw during the boom, supply without real affordability measures will not solve the problem for modest income working people.


"Government focus must be on reducing the cost of purchasing and renting a home. They must focus on investing in a supply of affordable rental and purchase homes.

"Instead of pumping €1.1bn over three years into private sector schemes such as Help to Buy, the Local Infrastructure Fund and Home Build Finance Ireland, Government must invest this money into Council led affordable housing. This could also be done in conjunction with not for profit housing co-ops.

"Affordable housing means properties at a sale price of between €160,000 and €260,000 in Dublin targeting households with incomes above the social housing threshold and below approximately €75,000 per year.

"It also means affordable rental tenancies with rent set at the economic cost of the provision and maintenance of the unit rather than on market prices.

"Given the bad news from the ESRI and Daft.ie, it is high time the Government started to listen."

(CD/MH)