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Second property bubble warning

A leading economist has warned that Dublin faces another property bubble as prices are being talked up.

Friends First economist Jim Power said the increase in prices in the capital are not reflective of the market across the country generally.

And he warned there was a risk of talking ourselves into another bubble.

"A housing shortage and rising prices in certain areas of Dublin does not constitute a recovery in the housing market," said Mr Power (right).

"There is a large bank of housing stock and development lands which are still tied up in NAMA and elsewhere and it is only when this supply comes back onto the market in Dublin and in other regions that we will have a more accurate picture of where the true market lies.

"Let us not repeat the mistakes of the past."

Mr Power said the Government should be looking at policies such as limiting income multiples, controlling Loan-to-Value ratios and introducing mandatory mortgage insurance.