According to CB Richard Ellis (CBRE), a number of price cuts have been made in new homes schemes in Ireland in recent weeks as developers attempt to secure sales in advance of the traditional summer lull.

It also said that a number of real estate agents around the country are tentatively reporting signs of increased activity in recent weeks although not unsurprisingly the market continues to be very price sensitive.

But obtaining loans is still a major hindrance to a property market recovery. The report said: ‘Anecdotally, potential purchasers claim that finance is still proving very difficult to obtain in the current climate despite the fact that financial institutions claim to have funding available for potential homeowners.’

Approximately 10,000 new housing units were completed in Ireland during the first four months of 2009 and the report predicts that there will around 23,000 housing completions nationally in 2009 with approximately 15,000 new houses likely to be built in Ireland next year. But this is a far cry from the 93,000 housing units built in 2007.

The report hits out at the recent decision by the Irish Government to introduce new taxes on holiday homes and investment properties. It said: ‘While the rationale for introducing legislation to tax holiday homes and investment properties is understandable in the context of broadening the national tax base, it is difficult to understand why the Irish Government are introducing this new tax now until such time as the Commission for Taxation have made their recommendations regarding property taxation.’