The housing crisis in Ireland is something about which we have spoken at length in the past. Between the mortgage rules and rising cost of rent excluding many from the market and the increasing cost of buying in general, this area has become quite the minefield in recent terms for anyone who wasn’t lucky enough to secure their house before prices began to climb. This week, it was announced that house prices in certain areas had dropped slightly for the first time in an age. The fact that this led to a giant exhale of relief is quite telling of the current market, as such a small event sparks a small level of hope for those currently saving to meet the lending rules. It seems from recent reports that prospective buyers have grown tired of being excluded from the narrative.
It was reported this week following a Sunday Independent opinion poll that almost three quarters of people currently saving for a mortgage believe the Central Banks mortgage lending rules to be incredibly unfair. This is a marked rise of 19% from last year’s findings and shows an atmosphere of dissatisfaction with the status quo in the housing market. It was also found that as few as 5% of those saving feel that the lending rules are fair. The study also found that more people are now saving for a mortgage than last year. Almost half of those surveyed stated that they didn’t feel the banks are doing enough to assist people in gaining a mortgage.
There was also a fairly strong belief revealed through this study that the housing market may be headed for another crash in the coming years with over half of those currently saving believing that this will be the future for the Irish housing market. This believe naturally creates discord among savers about whether or not now is a good time to buy, with 43% believing that now is the right time to buy, and 39% believing that now is not the right time to purchase a house. As you can see there is not much between the two camps given their utterly opposing views. Perhaps this discord is the reason why there has been a slight drop off in house sales this year, with the CRO (Central Statistics Office) reporting that there has been a drop of almost 5% in the first half of this year outside of the Dublin area.
While nothing is certain, particularly during these uncertain times as Brexit continues to loom large above us, there are certainly signs of a downturn in the housing market in the next couple of years as many people struggle to get a foothold on the property ladder.
Should you have any concerns, queries or require further information on these or any other business and financial matters please don’t hesitate to contact us we are always available to help.
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