Eight in every 10 applications for a mortgage are being turned down, it has been shockingly revealed by a survey.

The Professional Insurance Brokers Association questioned its members on activity in the second quarter of the year for the study.

It was revealed that the majority of respondents said that between six and eight in 10 applications were rejected, with the most common reason being concerns about job security.

This comes admidst CSO figures that show house prices in Dublin are now 48% lower than at their highest level in early 2007. The figures also show the average cost of an apartment in Dublin is down 57% since the peak.

Meanwhile prices for homes around the country fell by almost 14%.

A spokesperson for the insurance brokers said: "Effectively it's not really a surprise. Every indicator,be it asking prices or mortgages, as the CSO is based on - they're all pointing to further downward pressure on house prices."

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In the North however a call was made for new builds to save the struggling economy. It has been reported that house building is key to Northern Ireland's economic recovery.

According to John Armstrong, Managing Director of the Construction Employers Federation (CEF) the new build housing sector is one of the key industries that can help turn round Northern Ireland's economic fortunes and create growth and employment.

Mr Armstrong explained that house building construction provides a unique "multiplier effect" on the local economy.

"Every £1 spent on direct building activity generates at least a further £2.84 in the broader economy. On top of that the construction of new houses it helps to create and sustain thousand of jobs in construction as well as in the aggregates and building materials sectors," he explained further.

However he too acknowledged that problems lie with first time buyers who are unable to meet the requirements of mortgage lenders. This teamed with the inability of first-time buyers to collect the substantial deposits required has "hindered the recovery process".

Mr Armstrong said: "CEF has been actively trying to encourage local mortgage providers to turn on the 'lending tap' and increase liquidity in the mortgage market".

(LB/BMcC)