Ratings agency S&P: 'Robust recovery' in Irish housing market to continue
CREDIT ratings agency Standard & Poor’s expects the “robust recovery” in the housing market here to continue this year.
It said prices would rise by 6pc, aided by the ongoing improvement in the labour market and a housing supply shortage.
The rise in property prices was likely despite the vote in Britain to leave the EU, it said.
Brexit will have a dampening effect, but will not derail the economic recovery in this country, S&P said.
“The prospect of Brexit will also contribute to a slowing of house price inflation, but the ongoing improvement on the labour market, along with a housing supply shortage that the decimated housebuilding industry finds difficult to address, will underpin relatively solid house price growth in the medium term,” the ratings agency said in a report on Europe’s housing markets.
Analysts at S&P said housing shortages will remain a key driver of property price inflation.
Supply will only gradually catch up with demand, it said.
On an annual basis, property prices are likely to rise by 6pc this year.
In 2017, annual price growth will slow to 2.5pc, S&P said.