Housing crisis will be the first major test for Leo
Is it a case of déjà vu all over again on house prices? With residential property prices up by 10.5pc in the first four months of this year, the OECD has repeated its warning of a property bubble.
In its latest economic outlook for Ireland, the Paris-based think tank foresees strong economic growth accompanied by a shortage of housing supply. It's predicting that gross domestic product (GDP) will grow by 3.7pc this year before dropping to 2.5pc next year and to more reasonable rates after that.
Economic growth and the drop in unemployment are very welcome but they come at a time of inadequate housing supply. These and other factors, such as wage growth, are leading to higher property prices. New figures from the Central Statistics Office show that prices are rising faster outside Dublin than in the capital.