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Construction body chief disagrees with Central Bank governor over house price falls

The Director of the Construction Industry Federation disagrees with the Governor of the Central Bank who warned house prices could fall over the next two or three years.

Houses prices across the country are continuing to soar with new figures from the CSO showing houses prices are up 12.7% in the year to March.

Despite this, the Governor of the Central Bank, Philip Lane, is warning they potentially could fall over the next few years.

This is down to supply rising and other factors like Brexit.

Karl Deeter from Irish Mortgage Brokers agrees it could happen.

Mr Deeter said: "The prices are going up and people are still trying to buy even as the prices go up. But if the prices start to fall, suddenly everybody gets scared and you normally have an oversupply built at that stage.

"This is why we have property cycles and I think he's just aware of that and he's just letting us know that that's something in the future."

However, the Director of the Construction Industry Federation does not agree with the Central Bank's warning.

Hubert Fitzpatrick said there cannot be price falls in the housing market when there is such a scarcity of homes.

He said: "I believe that the current environment is such that we won't have house price falls, I think we have to increase house-building activity.

"And I think that the measures we have in place, with the Central Bank rules and the provision of a development finance sector, will ensure we won't have an oversupply in any of these areas."

Whether they go up or down, the Government is being warned it needs to be prepared for all eventualities.