The housing policies of political parties in the General Election were “completely unrealistic”, Shane Coleman has said. 

The ESRI published a report today which shows house prices are over-valued by 8-10%.

This jump in value is "not sustainable" for the property market, the ERSI has warned.

The think-tank also flagged concerns about the high level of mortgage debt being carried by Irish households.

The ECB, meanwhile, is expected to cut interest rates for the fourth time this year.

It is likely that rates will be reduced by a quarter of a percent.

A realtor hands over house keys, Alamy

On Newstalk Breakfast, presenter Shane Coleman said we should be "concerned" over the report's findings.

"I think if the ERSI, who are a very sober and measured body, think this is a worry we should sit up and take notice," he said.

"There are some strides being made [in the housing market] but we had a General Election that was fought by all sides on a completely unrealistic level as to what is possible."

Shane said the construction industry is facing a number of challenges.

"Anyone I talk to who works in the industry says there are huge capacity issues," he said.

"You just cannot get workers, you cannot get the skills, that the cost of building is huge, that all the materials have gone up in the last five-years.

"Everyone is saying it is really difficult; yet we’re talking about building 60,000 – 70,000 houses a year - I wonder how realistic that is."

Help to Buy Scheme

Measures like the Help to Buy Scheme and the Shared Equity Scheme may be leading to an over-valuing of house prices, Shane said.

"I know they are very superficially attractive to people, but the opposition has a point - I do think they drive up the cost of housing," he said.

"If you give people €100,000 to spend, of course, they're going to be able to bid higher on houses."

Co-presenter Ciara Kelly said she is "not as worried" about the ERSI's report.

"The house prices were over-valued in the crash by multiples of 10% - I don't think we're looking at the same degree of loose credit," she said.

"We had a credit bubble as well as a property bubble last time."

Ciara said house prices are a "commodity" and that they will go "up and down".

Feature image shows Shane Coleman (left) and a house for sale on the right (via Alamy).