A COUPLE ON a combined gross salary of \u20ac113,000 who want to buy a new, privately-built three-bedroom semi-detached home are priced out of counties in Dublin\u2019s commuter belt, according to a report by the Society of Chartered Surveyors Ireland (SCSI).<\/p>\n
The average purchase price of such a house in Kildare, Wicklow and Meath is above \u20ac500,000, the survey said. In Cork, it is \u20ac490,000.<\/p>\n
The report said even if a couple on said earnings have a 10% deposit and avail of the first-time buyers scheme Help to Buy, they would face funding shortfalls if they were looking to purchase in Kildare, Wicklow, or Meath.<\/p>\n
SCSI case studies indicate prospective buyers in Kildare would face a shortfall of almost \u20ac25,000, in Wicklow it would be \u20ac20,500 while in Meath it would be \u20ac11,500.<\/p>\n
This hypothetical couple, the income of which is modelled on a nurse and garda, would be able to purchase in Cork.<\/p>\n
Vice president of the SCSI Emer Byrne said agents are seeing a \u201cpersistent divergence\u201d between income growth and property values.<\/p>\n
\u201cIt has to be remembered that there are thousands of people on lower salaries who will not be able to buy and will require support.\u201d<\/p>\n
\u201cAffordability remains a significant concern, particularly for first-time buyers seeking family-sized homes in commuter counties.<\/p>\n
\u201cThe survey findings suggest that while government support schemes continue to assist some purchasers, rising house prices have outpaced improvements in purchasing power in several key locations.\u201d<\/p>\n
The report published today points to further affordability issues in the property market for first-time buyers.<\/p>\n
Purchase prices included in the report are median purchase prices of three-bed semis based on new housing developments in Kildare, Wicklow, Meath and Cork.<\/p>\n
Property prices nationally have increased by around 181% from their low point in early 2013, according to the Central Statistics Office (CSO).<\/p>\n
Estate agents expect these prices to increase by an average of 5% over the next 12 months, while the number of agents surveyed by the SCSI who consider current residential property prices as expensive or very expensive has risen from 84% to 92% in six months.<\/p>\n
Almost two-thirds of agents surveyed believe prices are increasing but will level off soon. Another 18% believe they have peaked.\n<\/p>\n
Rental market<\/p>\n
Today\u2019s report indicates that as smaller landlords continue to exit the rental market following a plethora of new rental regulations coming into play in March, ownership of rental properties is growing more concentrated among larger-scale institutional providers.<\/p>\n
Agents reported sustained landlord sales activity and continued exits by smaller rental providers.<\/p>\n
Survey responses indicated that more agents are experiencing an increase in sales instructions from landlords, the SCSI said.<\/p>\n
Agents said landlords are leaving the market \u201cdue to a mix of financial and regulatory pressures\u201d.<\/p>\n
\u201cThe most frequently cited reasons are that rental legislation has become too complex and restrictive, that net rental returns are too low, and that rising values have finally lifted some landlords out of negative equity, removing a barrier to sale,\u201d the report stated.<\/p>\n
This is resulting in a gradual restructuring of the private rental sector, with the shift forecast to weigh more heavily on regional markets, it continued.<\/p>\n
Byrne said the findings of the report indicates that the housing market \u201ccontinues to be characterised by an imbalance between supply and demand and ongoing affordability pressures\u201d.<\/p>\n
This is despite an increase in housing completions, she said, and the level of housing supply is the most important factor in determining future housing prices.<\/p>\n
Byrne said the successful delivery of additional housing supply depends on the provision of supporting infrastructure. This includes water services, transport and energy networks.<\/p>\n","protected":false},"excerpt":{"rendered":"A COUPLE ON a combined gross salary of \u20ac113,000 who want to buy a new, privately-built three-bedroom semi-detached…\n","protected":false},"author":2,"featured_media":571862,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,30036,807,3662,61,60,26844,154175,95352,241226],"class_list":["post-571861","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-first-time-buyers","tag-housing","tag-housing-crisis","tag-ie","tag-ireland","tag-property-prices","tag-rental-market","tag-scsi","tag-scsi-report"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/571861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=571861"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/571861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/571862"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=571861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=571861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=571861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}