Property prices will fall in Ireland if Britain leaves the European Union without a trade deal, a new report states.

Ireland faces Brexit-related risks because of its tight links with Britain, its largest trading partner, according to ratings agency Standard and Poor's (S&P). “Should the UK government fail to secure a transition phase and crash out of the EU without a trade deal, Irish trade with the UK would likely suffer, including residential investment in Ireland originating in the UK,” the report said, adding, “in that case, our forecast for house prices (in Ireland) would likely be substantially lower.”

However, it said if a situation where there is no trade deal is avoided then property prices in the country will keep rising. The report said economic recovery, job creation and housing shortages in Ireland will keep pushing property prices up.