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House prices rose slightly in May despite lockdown limiting sales

House prices rose slightly in May despite lockdown limiting sales

July 16 2020 

Property prices rose marginally in May even though the lockdown put the brakes on house purchases and sales.

The level of transactions nationally was down 46.2pc in the month as the pandemic hit the market hard.

Further drops in transaction levels are expected as a survey of banks about lending in July shows the largest number of rejections of mortgage applications since this was first recorded in 2015.

The July survey showed lenders tightened credit conditions the most since 2008.

The latest Central Statistics Office figures show property prices increased by 0.3pc nationally in the year to May, less than half the 0.7pc rise in prices recorded in April.

Month on month there was a fall of 0.1pc in May.

In Dublin, residential property prices showed no change in the year to May, according to the Central Statistics Office.

Experts said many of the sales filed in April and May would have reflected prices agreed months earlier, so it may take a while for the impact of the virus on the market to fully reflect in prices published by the CSO.

Property prices excluding Dublin were 0.7pc higher in the year to May. The survey shows demand for loans for house purchase and consumer lending fell at the fastest rate in the history of the series and is the first marked decline in demand since the last quarter of 2011.

The tightening of credit standards in the April to June period was coupled with the largest increase in rejected loan applications since the question was first asked in the survey at the start of 2015.