Minister for Finance Michael Noonan has played down fears of an impending property bubble in Ireland.
These fears were escalated yesterday when the Organisation for Economic Co-operation and Development (OECD) warned in its latest economic outlook that a sharp rise in house prices and property-related lending has raised the prospect of another Irish housing bubble.
“The sharp rise in prices and lending raises concerns that another bubble may be forming, and the authorities should stand ready to tighten prudential regulations if needed,” it said.
However, reacting to the news in Paris yesterday, Minister Noonan played down the warnings, attributing current dynamics to “a lack of supply”.
He said: “We need to build a lot more houses for all the young people who are founding families, and for the economic activity which is generating so many jobs.
“We have a lack of supply,” said Minister Noonan.