Fine Gael MEP Gay Mitchell has accused Irish auctioneers of falsely talking up the strength of the property market in order to keep house prices artificially high.

Mr Mitchell says those involved in the Irish market repeatedly predicted massive house-price increases for this year, even though interest rates were rising.

He says surveys released last year claimed prices would rise by between 8% and 10% in 2007, when in fact they look set to fall by around 3%.

Mr Mitchell says these predictions were made despite well-established trends in the US showing that house prices drop within two years of interest-rate rises.

The Fine Gael MEP is accusing Irish auctioneers of hyping up the house-price situation in order to boost confidence in the market and thereby hit home-buyers for bigger fees.

Posted: 07|11|07 at 9:25 am. Filed under: Auction News.