Fears of an imminent crash in the property market are not shared by the public, according to a survey.

Doomsayers who warn houses could tumble by up to 20 per cent in value receive short shrift from consumers, most of whom expect prices to rise by around 5 per cent in the next 12 months, research by IIB Bank reveals.

Only one in 10 of those surveyed think prices will decline, a clear divergence from commentators such as the Economist magazine which forecast a drastic collapse in the market.

With 60 per cent expecting prices to rise by 5 per cent on average, the findings suggest the market is not in danger of ballooning, said Mr Austin Hughes, IIB chief economist.

They also indicate supply and demand are nearing equilibrium and that mooted Government intervention - a possibility raised by the Taoiseach Mr Ahern at the Fianna Fáil Árd Fheis last weekened - could do more harm than good, Mr Hughes said.

The survey was published a day after Department of Environment statistics showed new house prices rose 13 per cent in the 12 months to the end of June, with second hand prices up 18 per cent.

As most households anticipate only modest price increases, the risk of the sort of severe disappointment that typically triggers a flurry of buying and selling and a downward spiral in house values, is not widely anticipated, said Mr Hughes.

He added: "Irish consumers expect what might be termed as a soft-landing for the Irish property market."

He added: "There is little evidence that a "bubble psychology" has become entrenched".

While 86 per cent of those surveyed don't intend to buy a house in the next two years, the fact that 4 per cent plan to make a purchase and a further 5.6 per cent expressed an interest in doing so, points to healthy medium term demand, said IIB.

Mr Hughes said: "If both groups were to purchase, it could be consistent with additional demand for up to 150,000 units. This should be seen as an upper boundary and is unlikely to be realised, but it is indicative of continuing strong demand for property."

Of those forecasting a sudden fall in prices, the Economist's predictions were the direst. It said house values would fall by up to 20 per cent over the next four years as part of a worldwide fall. "The consequences will be far more serious and painful than the current plunge in the stock market," it warned.

Consumers are also asked what they considered the most important and second most important factors driving house prices over the next year. They rank economic trends at the most important, followed by population growth, low interest rates and employment trends.

The fact that interest rates lag behind economic and population shifts indicates the public is taking a long-term view of the market, said Mr Hughes.

The survey of 1,100 households was carried out in tandem with the monthly IIB/ESRI consumer sentiment survey in August.