"Robust recovery" in house prices to continue, says ratings agency

Standard & Poor's forecasts increases of 6% this year...

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Credit ratings agency Standard & Poor's has forecast that the "robust recovery" in the Irish housing market will continue this year.

Despite the Brexit vote, S&P sees property prices increased 6%, owing to the shortage in the housing supply and improvements in the labour market.

The UK's decision to leave the EU will have an effect, but willl not derail recovery.

In a report on Europe's housing markets, S&P wrote:

“The prospect of Brexit will also contribute to a slowing of house price inflation, but the ongoing improvement on the labour market, along with a housing supply shortage that the decimated housebuilding industry finds difficult to address, will underpin relatively solid house price growth in the medium term."

Looking ahead to 2017, S&P sees annual price growth slowly to 2.5%