[Ireland] House prices soar to 14 times average salary

According to new CSO data, house prices in Dublin have now reached 9-14 times the average annual salary, Irish Examiner reports.

Residential property prices in the capital city have increased by over 92% since their property crash low point. Yet Central Bank rules prevent mortgage seekers from borrowing more than three and a half times their annual salary.

John Mark McCafferty - the chair of housing charity Threshold - explains that high costs leave prospective homeowners stuck in the rental market instead. He said, "People are effectively locked out of home ownership, especially younger people and people on middle incomes."

"Some will now spend the rest of their lives in the private rental sector and that puts huge pressure on that sector especially given the affordability issues related to renting and the lack of security of tenure that many people face."