House prices should fall to help people get on the property ladder, Ciara Kelly has said. 

In the newly revealed Programme for Government, Fianna Fáil and Fine Gael pledged to “prioritise a radical step change in housing supply” as house prices and rents continue to rise. 

On Newstalk Breakfast, presenter Ciara Kelly said it is not inevitable that housing costs must increase. 

“House prices in New Zealand are falling because they have managed to - even in a time of growth in the economy and increased population in cities - they’re building enough houses,” she said. 

“Supply is outpacing that and house prices are falling.” 

Home for sale. Photograph: Leah Farrell / RollingNews.ie

When fellow presenter Shane Coleman queried how popular such a policy would be in Ireland, Ciara said it would depend on who you ask. 

“I would want that in Ireland,” she said. 

“The people who want the house prices to fall are the people who don’t have houses. 

“That’s the great unspoken truth; if you have a house, do you want your house price to fall? Probably not. 

“If you don’t have one, do you want house prices to fall? Absolutely.” 

New homes under construction. Picture by: Gareth Chaney/ Collins Photos.

According to the CSO, between September 2023 and September 2024, house prices in Ireland rose by almost 11% in Dublin and 9% in the rest of the country. 

When in December last year, Mary Lou McDonald said she would like to see average house prices fall to around €300,000 in Dublin, she was strongly criticised by the Government. 

Then Taoiseach Leo Varadkar said it would “put a lot of people into negative equity” and urged the Sinn Féin President to “think more about the things she says about investment and tax, about asset prices, house prices, how that can actually hurt people”.

Main image: Ciara Kelly and a sales sign split.