THIS WEEK REVEALED that Ireland has taken the international top spot for house price growth.

The first 9 months of this year has seen the value of properties rise by 15%. This comes at a time when the Central Bank are intent of introducing new restrictions on housing deposits.

All of this is good new for the constructions industry, the recent upturn in which shows no sign of subsiding.

The Big Movers

The new mortgage rules 

This week the consultation process on the Central Bank’s new mortgage rules closed – with individuals and institutions having made over 150 submissions.

From next year, house-hunters will be required to stump up 20% of a house’s price – a figure which only 15% of the Irish public felt they would be able to afford.

Governor of the Central Bank Patrick Honohan Laura Hutton / Photocall Laura Hutton / Photocall / Photocall

In its submission, the Department of Finance said that it felt the Irish system was “novel” in an international context, and that changes should be introduced in a graduated effort.

The new rules have been criticised by the Ulster Bank Chief Executive Jim Brown, who said that two-thirds of people who bought homes this year would not have been able to do so under the new regime.

Skyrocketing

This week it was found that Ireland has the fasting rising house prices in the world.

The statistics, which come from the Knight Frank Global House Price Index, found that there had been a 15% increase in prices here since September – although these remain 39% below the 2007 peak.

The UK was also found to have had a huge price increase, while countries like Dubai and Hong Kong have seen a slowing down in growth.

Rents still climbing 

The amount a person can expect to pay out on rent in the nation’s capital is getting close to 2007 rates.

Rents in Dublin are now just 8.4% less than they were 7 years ago. In the last year alone they have increased by 9.5% according to new figures from the Private Rent and Tenancies Board (PRTB).

Sam Boal / Photocall Sam Boal / Photocall / Photocall

Around the country, things were a bit better – with rents 22.8% lower than they were in the final quarter of 2007.

Under construction

• New figures released this week showed continued growth in the construction industry, with activity, new orders and employment all rising. 
• Irish homeowners can expect to dish out up to 30% less for oil than this time last year, thanks to a collapse in the price of Brent crude oil.  
• The Government this week announced that it will be using Nama hotels as part of a range of measures to give accommodation to homeless families.
• This week an age-old question regarding festive home decoration was settled here on TheJournal.ie – do lights or decorations go onto the Christmas tree first?  

• Dutch students in the town of Deventer are living in a nursing home rent-free, with the only condition being that they keep the residents company.
• Twenty five elderly former tenants of Father Scully House will be moved to new accommodation in Dublin’s city centre in time for Christmas.  

Des res

Reports from American gossip magazines are saying that celebrity power-couple Beyonce and Jay Z are set to purchase this home in the Beverly Hills area of Los Angeles. It is thought it could sell for $70 million – $15 million less than its $85 million valuation.