Updated: 03/04/17 : 14:22:46
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Govt must take action to avoid another housing bubble call

There are claims Ireland could be facing another housing bubble if the Government doesn't take action.

It follows the release of two reports in the past 24 hours, showing rising prices around the country.

One of them, from MyHome.ie, has warned today that we could see double-digit price inflation by the end of 2017.

The latest hike is being linked to the Government's new help-to-buy scheme and the recent change to the Central Bank's mortgage lending rules.

Darren McKinley from Merrion Capital said there needs to be action.

“If there is to be a bubble it is very much a function of the poor infrastructure around the city and the lack of high-rise apartment blocks.

“We also need better infrastructure from Dublin city centre out to the likes of the airport, Clondalkin, Kildare, Wicklow - that will reduce the commute for individuals and therefore increase the attractiveness of travelling from these areas."

However the Junior Minister for Housing insists the government is making inroads on the issue of housing supply.

Minister Damien English said house completion figures are going in the right direction.

“Figures for 2015 were 12,000, for last year were just over 15,000 and we know that this year there will be 18,000. That’s a 25% increase year on year but it’s actually a doubling in the last two years, which proves we are addressing the supply.

“But we have to do it quicker and we know that.”