Minister for Housing Eoghan Murphy has laid out plans to help first-time buyers purchase a home. Government-backed mortgage loans will be provided at a fixed rate of between 2% to 2.2% with applicant’s income capped at €75k for a couple, and €50k for a single person. Applicable property values are up to €320k in urban areas such as Dublin, Cork & Galway and €250k in the rest of the country.
A report called “How Much Is Your House Worth, 2018?” shows that house purchasers are now prepared to commute 100km to work with Wexford, Laois & Carlow seeing the overspill of people unable to afford their homes in more expensive areas closer to the GDA. Prices in Laois alone grew 25% with Portlaoise being a popular destination in the county. The average house price there is €178,000 (Laois).
18.9% of the population now live in private rented accommodation, and 25% of Dublin’s population rent privately.
Latest figures from the Central Statistics Office show that house prices in parts of Dublin have risen 87% since the property low of 2013. Prices have risen an average of 12.8% to the end of September YTD, with Dublin seeing 12.2% rises.
Permanent TSB have increased their mortgage lending by 64% in Q3 2017 compared with the same period last year. The bank now accounts for 11.9% of all mortgage drawdowns.
The Economic & Social Research Institute (ESRI) in their latest property report have said that they expected house prices to keep rising over the next 3 years but that the market is not overheating (at present). However, they cautioned that as house prices rise, competitiveness will become even more of an issue. The ERSI said that the Central Bank lending restrictions should remain as they are.
House building activity in October 2017 was double the activity recorded in the same month a year previously. 1,067 new properties were registered via the BER scheme. The capital saw the majority of new homes built. YTD, there were 4,481 detached and semi-detached houses built which are the most popular type of house build.