Still with housing, but moving to Ireland, and credit ratings agency Moody’s predicts that Irish house prices could rise by 5% this year. Henry McDonald adds:

The number of homeowners in the Republic who are trapped in negative equity or have fallen behind in their mortgage repayments has also dropped dramatically, Moody’s say.

In their new year analysis of the Irish housing market, which was one of the main factors contributing to Ireland’s economic collapse towards national bankruptcy in the recession, the Moody’s report found that negative equity in the Republic is “still high.”

However, Moody’s have found that the number of borrowers in arrears or negative equity has fallen from its peak in 2013 to one third of all homeowners. In the aftermath of the financial crash, almost two-thirds of Irish homeowners were exposed to mortgage arrears or negative equity.

Its report also forecasts a supply shortage in new or available homes which will fuel rising house prices in the state.

Overall Moody’s projects that rising house prices and few mortgage arrears will continue to spread to Irish banks and their bonds which are backed up by home loans

According to the Irish Mortgage Holders Organisation there are 35,000 home owners in the Republic who have been in mortgage arrears for over two years.