Recent rises in house prices have reduced the number of Irish residential mortgage loans in negative equity, according to a report by the ESRI.

Dublin market experienced the greatest reduction.

It is estimated that the total number of mortgage loans in negative equity, in Ireland, reached a peak of over 314,000 by the end of 2012. The recovery in house prices by the end of 2013 reduced that number by approximately 45,000 – a fall of 15 per cent.

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Commenting on the results, author Dr David Duffy said: "Negative equity can have harmful effects on an economy through its impact on a household’s consumption, savings and labour market mobility. The combination of property price increases and mortgage repayment has reduced the extent of negative equity in Ireland in recent times which is positive for the economy overall."

(CD/MH)