Kerry auctioneer says interest rate increases not had expected calming effect on housing market

A Kerry estate agent says the increased interest rates has not had as much of a calming effect on the housing market as expected.

In the last 18 months, the European Central Bank has increased interest rates by 4.5% to try and tackle rising inflation.

Paul Stephenson of Sherry FitzGerald Stephenson Crean says banks also increased lending power, which to some extent balanced out the rise in interest rates.

He says he expected it to have a more calming effect on the housing market, but demand is still very strong.