Buyers facing 5pc a year rise for houses fuelled by pandemic and housing bill –

Property experts have warned house price increases are likely to remain at current levels for three to five years, fuelled by the pandemic’s impact on supply and unintended consequences of the Government’s new Affordable Housing Bill.

he State’s think-tank said these increases will limit access to the property market for first-time buyers. ESRI research professor Kieran McQuinn said the State building new homes would be more helpful than introducing legislation.

Mr McQuinn told the Sunday Independent new price caps introduced as part of a shared equity scheme in Housing Minister Darragh O’Brien’s Affordable Housing Bill have the potential to push the cost of a €400,000 Dublin home up by another €50,000. He said the new caps would effectively become targets for sellers, and suggested it would be more helpful if the State doubled investment in building homes.

“All the other policy measures are kind of skirting around the edges of

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