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House prices set to grow by 10% this year

According to Goodbody’s latest quarterly Irish Economy Health Check new mortgage lending is also expected to increase by 30% in 2017.

Image: Ireland

HOUSE PRICES ARE set to grow by 10% this year according to a forecast by Goodbody.

The stockbroker’s latest quarterly Irish Economy Health Check states that the growth is to reflect the greater-than-expected demand this year.

The company expects core domestic demand to grow by 3.7% in both 2017 and 2018, keeping Ireland at the top of the European table.

It’s also expecting mortgage lending to grow to €13.5 billion in the medium term – more than double the 2016 outturn – as house prices continue to accelerate.

Meanwhile, new mortgage lending is expected to increase by 30% to €7.4 billion this year. Goodbody Chief Economist Dermot O’Leary said:

Our analysis suggests that there is potential for further significant growth in new mortgage lending in the coming years associated with new supply, an increase in housing turnover and house price rises.

While Brexit remains a significant risk to the Irish economy, fears of major US tax reform have abated for the moment, according to the report. O’Leary urged greater spending on capital infrastructure to ensure medium-term prosperity.

Read: Most people on rent benefits still can’t afford to rent>

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