Grim outlook for house hunters despite slowing rate of price growth

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According to a report by the Society of Chartered Surveyors Ireland (SCSI).

The report also outlines affordability scenarios for various counties such as Cork, Kildare and Meath and shows that even house hunters with incomes close to £90,000 will struggle to find a home in many places.

SCSI said a couple with a combined salary of €89,000 who want to buy a new home and who have the 10% down payment that received purchase aid, will still face a shortfall. earn €30,000 in Cork where the average price of a new three-bed house in suburbs such as Ballincollig, Blarney and Glanmire is €380,000.

The situation was worse in Kildare where the same couple would face a shortfall of €64,000, with the average price being €418,000. Only in Meath, where the average price is £340,000, could the couple afford an average new home.

Hard

“These figures show that buying an affordable property remains out of reach for thousands of middle-income Irish people looking to buy their first home,” said John Sullivan, chair of SCSI’s practice and policy committee. .

“Of course, you’re also going to have thousands of people with salaries below that level.

Unfortunately, with construction costs continuing to skyrocket and interest rates rising, it looks like the situation for first-time buyers is going to get even tougher.

“While we have limited control over global supply chain issues and the cost of imported materials, we do have control over issues such as scheduling, procurement, utility connection charges, VAT and development contributions.

“We know from previous SCSI reports that these indirect costs are around half the cost of delivering a new home, and these are the areas that government and local authorities need to focus on if we are to reduce costs. delivery of new homes.”

Slowing house price inflation

The only bright spot in the report is the result of the SCSI survey of its members which forecasts that house price inflation will moderate to an increase of 3% during the calmer summer months and remain at 4%. for the next 12 months.

Addressing the Irish ExaminerTJ Cronin of Irish & European estate agent in Cork said supply was the overriding factor in high prices.

“Lack of supply for all categories of homes is the key issue,” he said.

It is heartening to see increased levels of new home construction, but it will take time to have an impact on prices.

“We’ve seen many people selling new homes and instead turning to the second-hand market with renovation and upgrade projects.

“But there is also a significant shortage in the secondary market. Increasing the supply of housing is what will remedy this crisis.”

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