THIS WEEK THE banking inquiry heard how property turned into a ‘national obsession’ during the ‘boom times’.

And speaking of the boom times, new figures from Euro Stat showed that last year Ireland had the fastest rising house prices in Europe.

This is a trend that is unlikely to continue this year however – with new mortgage rules from the Central Bank taking hold.

The Big Movers

‘National obsession’ 

Speaking to the banking inquiry this week, Klaus Regling, an economist with the European Central Bank, said that property had become a “national obsession” in Ireland in the lead up to the 2008 financial collapse.

Regling co-wrote a paper in 2010 detailing the steps that led to the banking crisis.

Klaus Regling at the banking inquiry this week Mark Stedman / Photocall Mark Stedman / Photocall / Photocall

In the course of his appearance, the now CEO of the European Financial Stability Facility said how he found it “surprising to have heard so many personal anecdotes from ordinary people about property investment.”

Fastest rising house prices in Europe 

New figures from the EU’s statistics database Eurostat this week showed Ireland to have had the fastest rising house prices in Europe.

In the 12 months between September 2013 and September 2014, house prices in Ireland grew by 15%. This was much higher than the 2.3% EU average increase. Ireland also saw the highest quarterly rise – with an increase of 6.8% between the first and second quarters of 2014.

eurostat eurostat

These rises are not expected to be as extreme this year with new Central Bank mortgage rules coming into effect.

Stopping another boom 

It was predicted this week by estate agents that the new rules from the Central Bank could help stop another housing bubble but may also contribute to rent increases.

The Real Estate Alliance called upon the Central Bank to make adjustments for Ireland’s ‘three-tier market’ – something that is divided up by geographical location.

Photocall Ireland Photocall Ireland

There has been some talk this week that consideration has been given by the Central Bank to offering different rules to first-time buyers.

Under construction

• New statistics this week from the Central Statistics Office showed that heating in the Irish homes that have been built has improved dramatically over the past 10 years. 
• Worrying news this week came from the Environmental Protection Agency who produced a report saying that 940,000 people could be at risk from contaminated water. 
• The new Night Café – a café exclusively for homeless people – opened its doors on Merchants Quay this week.   
• After the television drama ‘Charlie’ finished on Sunday, TheJournal.ie spoke to someone who did a bit of house sitting in Haughey’s mansion.

Photocall Ireland Photocall Ireland

• Irish Water has said that it has not left residents in a Clondalkin Estate “high and dry” after a water main burst last November. 

Des res

A lot of people dream of living in New York. This week Business Insider featured a set of photographs overlooking the city at night. The photographs, from photographer Vincent Laforet, were taken by dangling from a helicopter flying over the city.

Vincent Laforet Vincent Laforet

And finally…

This week The Guardian looked at a set of modernist properties in Tel Aviv. Unesco status has been given to the set of buildings known as the ‘White City’.

In reviewing the book ‘White City, Black City’ by Sharon Rotbard, the history of sectarian conflict in the region is examined.

Read: Klaus Regling has said the Irish were ‘obsessed’ with property

Also: Ireland has the fastest rising house prices in the EU