Sir, - Property prices in Ireland particularly for domestic homes, are escalating at such a rate that a sense of desperation is now creeping into the minds of prospective purchasers. This is certainly the case in the county of Dublin and in the neighbouring counties of Wicklow, Meath and Kildare.
In the 1970s, when the value of an acre went to £4,000, the banks were criticised in part for pushing the prices up, due to the friendly lending policies they pursued at that time. The same argument can be forwarded at this juncture as a part explanation for the brutal rises in property prices in Ireland. The banks are certainly lending at above the recommended 2 1/2 times a person's salary, to facilitate the purchases of property which are exceedingly expensive.
The fact that they are willing to lend such large amounts for exorbitant properties with little supervision is helping to boost and escalate property prices. It is a process which results in purchasers being financially strangled, with little recourse.
I would call on the boards of the leading banks to exercise a stricter supervision and caution in granting home loans. On a broader macro economic front, the fact that property prices are rising at such a rate could increase inflation in the Irish economy as a whole. This is an underlying economic worry which also needs to be addressed. - Yours, etc.,
Dublin Road,
Navan Co Meath.