A new survey shows that house prices continue to rise and warns against over lending which could result in negative equity.
It's boom time in the residential property market.
The price rises are particularly high in Dublin with a house in Killiney last week selling for a record £2.3 million. For those in the middle of the market, the price of property has risen by almost 50 per cent in the last two years.
According to the IPAV (Institute of Professional Engineers and Valuers), second hand house prices have risen by eight per cent nationally. However, the biggest increases have happened in Dublin at 14 per cent. The IPAV warns that it is time for caution and are concerned about the granting of 95 per cent mortgages.
Liam O'Donnell of the IPAV says that there is real problem when banks are lending between 95 and 100 per cent of the value of properties. Any blip in the housing market could result in negative equity.
A 10 per cent blip and we have negative equity.
The IPAV is calling for a radical debate on housing shortages in Ireland and is calling for government action on housing policy. The IPAV is also calling for the establishment of a commission to supervise the development of the Greater Dublin Area.
An RTÉ News report broadcast on 15 October 1997. The reporter is Roisín Duffy.
