The Housing Crisis in Ireland is spiralling out of control. The unprecedented boom in housing prices looks set to continue. If this is so, what can be done if control is to be gained over this unbelievable growth? Is the Irish Housing Market heading towards a Boom / Bust scenario and mirroring the bubble that burst in the UK in the late 80s? Or, and this growth be sustained and a boom / burst scenario be avoided.

Little can be understood without looking at the factors that influence the Housing Crisis.

Why do I call it a Crisis ? ? ?

I call it a crisis because a 'crisis' is what I believe it to be. House prices are shooting through the roof and demand for housing exceeds supply in an exaggerated way.

A crisis it is as it has thwarted the spirits of First time Buyers and deflated their enthusiasm when trying to buy their first home.

And, further more, a crisis it is as mortgage variable rates drop due to increased competition amongst the mortgage lenders in Ireland. These interest rate drops along with competition ploys exercised by the various mortgage lenders particularly since the outbreak of a mortgage war in August ’99 enable borrowers to borrow more at lower rates of interest - Thus, fuel is added to the fire as prices increase due to increased customer spending potential and the gap between those who can afford to buy a house in Ireland and those who cannot is widening even more.