Dublin puts blame on Airbnb… again

The new protocol is whatever the issue is blame it on Airbnb.

Airbnb is being blamed for causing the housing crisis in Dublin. Critics are saying that the up and coming ‘hip’ way to travel site is causing apartments and houses that would be long-term let into short-time let. The site apparently contributing to Ireland’s housing shortage by taking housing off the market.

Policymakers and businesses has started a trend worldwide of blaming this short-term rental site for economic and societal problems with little evidence to back it up, claims Mark Paul from the Irish Times.

Ireland is not the only blaming Airbnb, New York has hotels (Airbnb’s competition) lobbying politicians left and right. Italy accused Airbnb of turning the country into a theme park.

Such problems are linked to issues in Venice from Airbnb, supposedly. With landlords making more money in a week from travelers compared to long-term lets in a month; therefore, the landlords are increasingly turning their properties into Airbnb listings. Venice being such a small city, there is not many places to rent in the first …

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Millennials are less likely to move more than other generations

The millennial generation in America have been moving less frequently than before. 11.2 percent of Americans moved homes from 2015 to 2016 which is the lowest since the start of the Census in 1948. Before 1985, more than 20 percent of Americans were moving in a year but the rate has been declining since then.

Richard Fry of Pew Research Center believes one of the factors for the lower moving rate for millennials is the difficulty of owning a home. After the housing bubble burst of 2008 the stricter lending regulations combined with high student debt can make it difficult to obtain a loan to buy a house. Buying a house is another reason people would want to move.

Richard Fry also thinks it’s because of the relative immobility of millennials. 25-35 year olds are moving slower than people of the same age for the past 50 years. This is surprising considering they have lower …

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Mortgage update on the UK: First-time buyers average deposit is rising

In the UK, the average price for their first-home has hit a record high at £207,693. As well as nearly half of all buyers of homes are first-time buyers. Within the first six months of 2017, the number of first-time buyers are at 162,704. This is only 15 percent below the peak of 2006.

On average £33,000 are needed for deposits for first-time buyers.

London we see even worse housing increases at an average deposit for first-time buyers at £106,577.

Northern Ireland is hitting the lowest spot at an average of £16,457 of deposits, Wales at £17,193, and Scotland £21,565.

Like our Help-to-Buy scheme in Ireland with tax rebates of up to 20,000 euro, the UK has a program similar. Their Help-to-Buy scheme with the low mortgage rates gave first-time buyers a push to buy. That could …

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Bank of England raises counter-cyclical capital buffer to 0.5%

Bank of England announced to lenders that it is raising the country’s counter-cyclical capital buffer from 0 to 0.5% to mitigate pressures from increasing consumer credit. The counter-cyclical capital buffer is a requirement on all banks, lenders and investment firms to keep a certain level of capital when credit growth is excessive. To a certain extent, this buffer is able to insulate banks from the cyclical growth and downturns of the economy. Bank of England’s decision reflects its interests in slowing down credit and lending in the British economy.

 

By raising the counter-cyclical capital buffer to 0.5%, British banks must increase their held capital by over £11.4 billion over the next 18 months. The Bank of England also has the intentions of further increasing the buffer by 0.5% to 1% by the end of 2017 to combat increases in consumer credit and lending. The counter-cyclical buffer has only been used once in the UK, but was quickly revoked due to stagnate economy conditions during the immediate aftermath of Brexit.

 

Bank of England’s Financial Policy Committee warned that there …

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Housing Prices push up living wage

The Living Wage Technical Group, an organization that annually calculates the wage required to support an acceptable standard of living in Ireland, recently published it’s 2017 report, listing the living wage as €11.70 an hour. This new rate is €0.20 higher than the previous rate and €2.45 higher than the actual minimum wage in Ireland.

 

The Living Wage Group defines the living wage as a rate that “provides employees with sufficient income to achieve an agreed acceptable minimum standard of living”. It is calculated to account for the price of various necessities such as clothing, food, housing, healthcare, and education. Out of these factors, many experts have attributed rising housing prices as the main reasons behind the need for higher wages.

 

In its 2017 report, the Living Wage Group supported this reasoning and published that “the current housing crisis, and associated increases in rent levels, has been the main driver of the increased wage rate”. The average house price in Ireland has risen 11.2% over the past year, with areas such as Dublin seeing even greater increases in …

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Unemployment rate falls towards 6%

New figures released by the Central Statistics Office show that the current rate of unemployment is 6.3%, the lowest it has ever been since the market crash. This rate is 2% lower than that recorded in June of 2016 and the exact number of workers who are listed as unemployed fell by 42,100 during this time.

 

The current rate of unemployment in Ireland is 3% lower than the EU average, reflecting this country’s incredible economic progress in the past few years. Although the unemployment rate is still higher than that in countries like Germany and the Netherlands, experts predict that the steady downward trend will continue.

 

Furthermore, Ireland has an unique advantage in its ability to better integrate immigrants into the work force. The unemployment rate for foreign nationals in Ireland stood at just 7.7% last month, when they are much higher across the rest of Europe.

 

Economist Mariano Mamertino believes that “Ireland remains on a clear trajectory for unemployment to …

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Mortgage market update in the UK

The mortgage market in the UK after Brexit was announced has been shaky. With everyone not knowing how Brexit will turn out, they are weary of committing to huge financial obligations.

However, the UK mortgage market is starting to see potential buyers increase again. In May, a total of 121,464 mortgages were completed.

Total mortgage loans increased by £3.5 billion, which is the fastest pace in more than a year. Mortgage lending has increased 2.9 percent in the past year. The prediction for next years growth is 2 percent in 2017.

The slowdown in growth we can see come from the Brexit. The value of the Sterling dropping makes customers reluctant to purchase a house. This has very negatively affected the housing market in the UK.

The consumer credit card and personal loan debts have been on the rise as well. This is also causing worry from the Bank of England’s Financial Policy Committee as consumer credit continues to rise.

More regulations are going to be put in place to slow down the lending growth and another measure to be …

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Airbnb claims it is not affecting long-term letting

In reference to Airbnb cannot beat revenue from long-term letting, company says by Colin Gleeson on 28 June 2017 in the Irish Times.

On Wednesday, Airbnb spoke to the Oireachtas housing committee claiming that their service does not affect the long-term letting in Dublin. The reason- on average an Airbnb host has to rent out their place well over 120 nights a year to beat the money made from long-term letting. This means hosts would rather long-term let their place than short-term let, if the goal was profit.

Critics of the company are claiming that property owners are ditching the long-term letting and going exclusively to short-term lets. This would not be helping Dublin in this case due to the massive housing shortage.

Patrick Robinson, the Airbnb director of public policy for EMEA, came to the committee with vast amount of information on hosts, statistics, …

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Bank of China opens Dublin branch

On Tuesday, Bank of China opened its first branch in Dublin. The official ceremony was attended by Tian Guoli, Chairman of Bank of China, and by Taoiseach Leo Varadkar, symbolizing the strengthening relationship between China and Ireland, and their many joint trade and financial interests.

Bank of China is China’s most internationally active bank, and has locations in more than 51 countries. Prior to the opening of a branch, it’s presence was already felt in Ireland through BOC Aviation, a separate company that leases aircrafts carriers in Ireland. The Bank is 64% owned by the Chinese government, and  main focus in Ireland will be in corporate lending. It’s major customers will most likely be businesses with interests in China, multinationals, and Chinese firms with operations in Ireland.

Although it’s current interests are narrow, Bank of China hopes to build a diversified platform of services and products in Ireland within the next two years.

The official opening a location not only confirms the Bank’s commercial interests in Ireland, but also signals Irelands growing prominence as a destination for foreign investment.

Martin …

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Soon to see more regulation among housing

In reference to Greater regulation of our building standards would make it easier to fund social housing by Charles Barry on 26 June 2017 in Independent.

The house building of Ireland is continuing to rise but not without trouble. High demand means there is a chance builders are only looking at their output volume and not the quality. This led to numerous issues that have came up in late 90s and early 2000s – breaking health and safety regulations, pyrite, poor building quality, and contractor bankruptcy.

Regulations have since come up to avoid these issues with Building Control Amendment Regulations and Construction Industry Register Ireland. Even with these regulations in place, it can not completely solve the problem.

There is a similar situation in the UK with about the same building laws. A recent study found that 66 percent of the underlying issues of buildings are caused by poor workmanship.

To help alleviate this issue, the Dáil approved a motion to improve regulation for buildings. It improves the standard and quality as well as support to homeowners …

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