Daft Property - Irish Property News

HOUSE prices could decline by another 20pc from their current levels while variable rates are due to go up again, an international agency has warned. And ongoing rises in mortgage arrears mean borrowers in this country are effectively on strike, credit ratings agency Fitch said. But despite this, there is likely to be a moderate rise in lending to first-time buyers this year. The agency, in a report on the global mortgage market, said property prices here could fall as much as 20pc, but it has assumed a 10pc decrease. Since the bursting of the property bubble, prices have dropped by 50pc, to take the average value to €160,000. Another 20pc fall would take the average price nationally to €128,000. The agency, which rates the economic solidity of countries and companies, said there were signs that prices have stabilised, but a glut of unoccupied properties outside the cities and muted mortgage lending meant price rises were likely to be limited this year. The number of