Wednesday 14 November 2018

House price inflation is expected to slow

Dublin in particular will be impacted, with property market professionals forecasting price inflation of 2pc in the coming year, down from a previous forecast of 7pc. Photo: Stock Image
Dublin in particular will be impacted, with property market professionals forecasting price inflation of 2pc in the coming year, down from a previous forecast of 7pc. Photo: Stock Image
Ellie Donnelly

Ellie Donnelly

Property price inflation is expected to "slow dramatically" across the country over the next three years. The expected house price inflation nationally is now 5pc for the coming year - down from 8pc since the final quarter of 2017.

Over the next three years property price inflation is expected to be at 8pc nationally, down from a previous forecast of 14pc, according to the latest property price survey from the Central Bank and the Society of Chartered Surveyors Ireland (SCSI).

The availability of bank credit is the primary factor behind the anticipated price changes, the survey said.

Dublin in particular will be impacted, with property market professionals forecasting price inflation of 2pc in the coming year, down from a previous forecast of 7pc.

Price inflation in Dublin is expected to fall to 6pc from 15pc over the next three years.

"While it's clear the housing crisis will continue for some time, the findings are a positive indication we are making progress in returning to more normal market functioning conditions," John O'Sullivan, of the SCSI, said.

"Double-digit price inflation is not sustainable in the long term. A return to moderate, low single-digit growth is most welcome, particularly for first-time buyers."

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