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'Stimulating demand creates a bigger problem' - Property expert on Help-to-Buy scheme as 10pc house price jump forecast

by Gordon Hughes January-05-2017

Hopeful house buyers "will find it tough to find something", according to a leading expert on the property market.

Economist at Trinity College, Ronan Lyons, predicts that house prices will continue to rise between 5pc and 10pc over the next 18 months.

However, house prices in the capital have risen dramatically over the past three years - increasing by an average €102,000, or 46.2pc, since the end of 2013 - while those outside Dublin rose by an average of €48,000, or 36pc.

"It's important to distinguish the difference between Dublin and the rest of the country," Mr Lyons told RTE's Today with Sean O'Rourke.

"In Dublin there was a 5pc increase in prices in 2016 and that compares to a 2.5pc increase in 2015 so there is an inflation in cost in the capital. But it's still well below house price inflation outside Dublin - a 10pc increase in 2016.

"In practical terms it means that we saw countrywide an 8pc increase and the average asking price nationwide is 220k compared to a low of 160k about two years ago."

The same culprits responsible for pushing up house prices last year - lack of supply and a growing population - will lead to more double-digit increases this year, according to survey author Ronan Lyons.

Increases in house prices are particularly expected outside the capital, which saw double-digit inflation in 2016, according to Daft.ie.

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