Tag Archives: Housing

This afternoon.

Ireland’s Parliamentary Budget Office (PBO) has published a ‘snapshot’ of the housing market in 2021.

Viewer discretion advised.

Via RTÉ News:

From 2012-2020, it finds that average wages grew by 23% while house prices grew by 77%. For some, this is making house ownership “unachievable”, the report states.

It says high prices relative to incomes are “pushing potential buyers out of the market and into rental accommodation, social housing or emigration.”.

It notes that prices rose during the Celtic Tiger era at an average rate of 12.6% a year.

Prices rose by an average 7% a year from 2015-20.

The PBO cites the figure published by Banking Payments Federation Ireland last year that home ownership among those under 30 has collapsed from 60% in 2004 to 27% in 2020.

Using the Demographia International Housing Affordability Survey (DIHAS), which measures house prices against median incomes, it concludes that Irish house prices are “severely unaffordable” and have been for several years.

It says that housing affordability has worsened for renters, noting that rents are now 40% higher than their pre-crisis levels in Dublin, where rents have doubled in the past decade, and 20% higher in the rest of the country.

 

‘Collapse’ in home ownership among young adults – report (RTE)

RollingNews

This morning.

Via Irish Times:

The average deposit needed to buy a home is now €52,500 for a first-time buyer (FTB) and €135,000 for a mover purchaser, according to figures from the Banking and Payments Federation Ireland (BPFI).

This is more than double what it was less than a decade ago, reflecting the rapid increase in house prices since the low point of the crash in 2012 and the Central Bank of Ireland’s mortgage lending rules, which require buyers to have bigger deposits relative to the value of the property.

The BPFI’s latest housing market monitor includes a loan-level analysis of the source of deposits in the first half of 2021.

It found that nearly 42 per cent of FTBs and 25 per cent of mover purchasers used gifts as part of their deposits.

First-time buyer needs €52,500 for average deposit (Irish Times)

Meanwhile…

Social Democrats Housing Spokesperson Cian O’Callaghan said:

“An entire generation has been locked out of the market. Average deposits are now more than double what they were just 10 years ago. How can anyone on an average income afford to save €52,000? Homeownership is simply slipping out of reach for many young people.

The pressure to save vast sums of money, while also paying incredibly high rents, is putting people under huge stress and strain. It is therefore unsurprising that four in ten first-time buyers are reliant on gifts from parents in order to fund the purchase of a home.

“House prices have shot up by over 12pc in a year. This is unsustainable. The housing market is out of control and there is no evidence that the Government’s housing plan is working. In fact, things are getting worse instead of better.

“The solution to this crisis is crystal clear – the State must build thousands of homes that are genuinely affordable. This can be done by using public land. To date, this has not been done anywhere near the scale that is required. We need 10,000 affordable homes to be built each year.”

RollingNews

This morning/afternoon.

Figures released earlier show that Dublin house prices increased by 11.3% and apartment prices increased by 5.7% in the year to August.

Via RTÉ News:

Residential property prices increased by 10.9% nationally in the year to August, with about half of this growth coming in the latest three months, new figures from the Central Statistics Office show.

This is the largest annual change in prices since June 2018, the CSO said.

The CSO reported significantly more transactions in the market in August with people buying 3,764 homes, an increase of 59.6% compared to the same time last year.

Home prices jump by 10.9% in year to August – CSO (RTÉ)

Meanwhile…

…Cian O’Callaghan TD , Social Democrats housing spokesman, said:

“What is the government going to do to control soaring costs? It’s only big idea, to solve the housing crisis, is to pour petrol on the fire of an already red-hot property market, through their proposed shared equity scheme.

“Schemes like the ‘help to buy’ scheme and the ‘shared equity’ scheme will not increase the supply of affordable homes – they will ratchet-up prices to ever increasing unsustainable levels.

“The government does not want to make housing more affordable. The best way to make housing more affordable is to build homes that are affordable instead of continuing to waste money in subsidies for developers that push up prices.”

Fight!

RollingNews

This morning.

Leinster House, Dublin 2.

Sinn Féin spokesperson on Housing, Eoin Ó Broin, carrying a thoroughly-notated copy of the government’s Housing for All programme, speaks to media on the plinth at Leinster House.

Sam Boal/RollingNews

Meanwhile…

Last night.

Earlier: Build Back Bitterer

Meanwhile…

Meanwhile…

Ah here.

Ciarán – Crazy House Prices tweetz:

€1,200 per month for this. You’d get more space in a prison cell. What do you do if you have notions though and want to actually own some clothing? Or belongings? But sure you can hardly expect those luxuries for only €1,200 per month….

In fairness.

Ciarán – Crazy House Prices

Prices for three-bedroom semi-detached homes nationwide have risen more than 4pc over the past three months

This morning.

Via Independent:

Selling prices for three-bedroom semi-detached homes have risen more than 4pc over the past three months nationwide, with areas such as Drogheda and Limerick recording double-digit increases in the same period, according to new data released today by the Irish Independent REA Average House Price Index.

The survey also shows house prices in Dublin are surging by €1,500 a week.

The price of the average semi-detached home rose by an average €10,000 countrywide over the past three months to €253,685 – leading to an annual increase overall of 8pc.

The biggest rises in Q2 came in commuter counties and the country’s large towns as buyers continued to move out farther from the capital in preparation for long-term hybrid-working situations…

‘Red hot’ rises: Return to Celtic Tiger era as house prices surge by up to €1,500 a week (Independent.ie)

RollingNews

This afternoon.

Malahide, county, Dublin.

The Casino development, in housing minister Darragh O’Brien’s constituency, where the National Asset Management Agency (Nama) is reportedly close to signing a sale for 69 of the apartments to UK-based SeaPoint Capital, an investment fund in the rental market.

The complex was built by controversial developer Gerry Gannon. Nama had previously sold 34 apartments to individual buyers at an average price of €433,000 per unit.

Earlier:  The Casino

RollingNews

From top: Social Democrats co-leader Catherine Murphy; Gillen Markets

This afternoon.

During Leader’s Questions, Social Democrats co-leader Catherine Murphy quoted to Taoiseach Micheal Martin directly from a note sent by Dublin-based financial advisory firm, Gillen Markets, to their investors.

She told the Dail:

“It said, and I quote: ‘The current high level of house prices and rents in Ireland’s residential property market have been driven in a significant way by the Government’s housing policy with favourable policies attracting institutional investors, such as Ires Reit, into the market.

“‘Their gradual move into the market has contributed to higher housing prices and, thus, higher rents.’”

“It continues: ‘Overall, the current housing policy has benefited both institutions and developers at the expense of individual buyers.

“‘The potential risk for institutions such as Ires comes from a potential change in Government policy.’”

Ms Murphy added:

“Now, Taoiseach, Gillen Markets’ assessment of your Government’s housing policy is among the most damning I’ve ever read, even if it wasn’t intended to be. And, your Government knew all about it.”

In June last, The Times Ireland Edition, published a lengthy article about it and, like any good journalists, they called the Department of Housing to get their reaction. So, Taoiseach, don’t say you weren’t warned – the warning came from the vulture’s mouth.

When firms like Gillen Markets give cuckoo funds warnings about risk, what they tell them is their biggest threat in this country is a wholesale change in government policy to an interventionist approach that boosts affordability.

…The key reason the Government decided to act was that you know the game is up. Mullen Park was only the catalyst – you know this will not be tolerated by those trapped in this situation any longer…

Taoiseach accused of ‘sitting on his hands’ as rents spiral out of control (Belfast Telegraph)

RollingNews