Banking group says house prices will continue to rise despite overvaluation warnings

BPFI says structural issues will keep demand for property high

Brian Hayes, chief executive of the Banking & Payments Federation Ireland. Picture: Rollingnews.ie

The shortage of new housing supply, major population growth and soaring rent costs will likely keep demand for new mortgages high, an industry lobby group has said.

In a new report, the Banking & Payments Federation Ireland (BPFI) said the fall in the purchasing power of households caused by inflation is likely to affect mortgage demand in the “short term”.

“However, looking to the medium and longer term, the significant gap between average rents and ...