House prices are increasing now up to €1,000 a week, up from previous report

MyHome.ie just released a report than claims house prices are increasing more than the Daft.ie report. MyHome.ie report doubles Daft.ie’s findings, a rival website.

A greater focus on property prices in Dublin may be the reason for the vast difference in price increase especially because Dublin average monthly increase is more than €5,000.

The report also indicates the possible increase of prices are due to the Help-to-Buy scheme being reviewed for termination. Fear from first-time buyers are rushing them to buy houses before the cancellation of the scheme.

The Help-to-Buy scheme can provide tax rebates up to €20,000. The property prices nationally were up 8.9 year-on-year.

Conall MacCoille, author of report, said the huge inflation of house prices can be from job growth, high competition among homebuyers, and rising income. This as well as the Help-to-Buy scheme contributed to a rapid increase of house prices.

An increase of first-time buyer lending and relaxing of the mortgage lending regulations is also a factor.

MacCoille is predicting a rush of mortgage lending in 2017 if the Help-to-Buy scheme is phased out and the …

Read More

House prices to increase for up to 10 years

The Daft.ie report stated that the first six months of 2017 in Ireland the house prices has risen more than all of last year. They will continue to rise for the next five to ten years unless signification measures are taken.

The house prices are moving up 12 percent higher than a year ago with an average of €2,000 a month. This leaves Dublin on the forefront of the housing increase.

Housing prices increasing means more people wanting to sell their home with more than 6,000 homes listed for May. That has been the highest total since middle of 2008. However, this increase of property for sale is not even close to meeting the demand of the market.

With the government reviewing the Help-to-Buy scheme, fear comes as this may lead to another surge of people wanting to buy.

A Daft.ie economist Ronan Lyons warns the rates in Dublin are going to increase faster than any other part of Ireland. He said this was because, “we’ve regulated ourselves out of the volume of homes that are needed”.

The possible cause …

Read More

A loan may be offered to vacant-home owners

In reference to Loan scheme aims to bring vacant homes into use by Paul Melia on 29 June 2017 in Independent.

A possible solution to the shortage of housing in Ireland: a local authority loan could be offered to property owners of vacant housing. This solution came about when it was heard that 80,000 vacant housing was available in high demand urban areas from the 2016 Census. About 100,000 units are vacant in non-urban areas, excluding holiday homes. Data shows Ireland’s vacancy rate is at 9 percent while UK is only at 2.5 percent.

Chairman of the Housing Agency Conor Skehan worries about the impact on Ireland’s competitiveness if the housing shortage issue is not addressed. Affordability is essential to Ireland’s competitiveness and the housing costs drives wage costs so if housing is imbalanced Ireland’s competitiveness may be in trouble.

The one stipulation of this loan is it has to be affordable housing. This could raise the issue to some houses in areas not usually affordable.

This loan, however, can be just what an owner needs to get a …

Read More

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, …

Read More

Mortgage approvals up 45% in May

Data released by the Banking and Payments Federation Ireland revealed that mortgage approvals have gone up 35% May of this year in comparison to May of 2016.

 

There were a total of 4,124 mortgages approved in May, with a combined value of €884 million. This represents an increase of 1,078 mortgages and a €275 value compared to May of 2016.

 

This increase in mortgage approvals is likely caused by lower interest rates and by greater general confidence in the economy. It also represents a continuously growing demand in the housing market, and a supply that is slowly but surely catching up.

 

First time buyer mortgage approvals in particular are up 45.8%, the value of such mortgages also saw an even more dramatic increase of 60.7% compared to May of last year. This indicates growing confidence on the part of borrowers. First time buyers are purchasing more expensive housing and are seeing housing prices rise.

 

It is …

Read More

Is there or is there not another housing bubble?

In reference to No evidence of another Irish housing bubble, IMF says by Peter Hamilton on 26 June 2017 in the Irish Times.

The answer is no but close monitoring is needed. A Washington-based company, the International Monetary Fund (IMF), has confirmed there is no housing bubble in Ireland. Even with the quickly rising prices of property and an increase of mortgage approvals, IMF realizes this is significant but it is not a housing bubble… yet.

There is no statistics to show there is an imbalance of the pricing of houses. However, there is an increase demand for housing that could lead to an imbalance, especially with the Central Bank’s mortgage lender rules and the help-to-buy scheme for first timers. IMF has recommended close monitoring of the market to make sure a bubble is not formed.

The likeliness of this increase of housing demand should …

Read More

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 …

Read More

The new fast track planning law: will it help boost housing supply?

A new fast-track planning law officially came into effect last Friday. It was passed in December of 2016 as a part of The Planning and Development and Residential Tenancies Act. After months of delays in which officials debated over application fees, the law has now been officially be enacted.

The Planning and Development and Residential Tenancies Act 2016, introduced by former Minister for Housing Simon Coveney, introduced the idea of strategic housing developments. It was intended to provide greater stability for tenants and to help streamline the planning process. An important aspect of the Act is the new fast track planning procedures it introduced. The fast track planning procedure allows developers to bypass their local authority and apply directly to An Bórd Pleanála, an independent authority that previously only made decisions on appeals after plans have been rejected by local authorities. The Board was established by the Local Government Act of 1976, and now its responsibilities will expand to include taking and reviewing applications submitted through the …

Read More

Only one in three approved homes have been started

With reference to Work has yet to start on 23,000 homes in capital which have permission by Paul Melia on June 26 2017 in Independent.

To keep up with the rising demand of the housing market around 30,000 to 35,000 houses need to be completed every year. With 7,975 houses completed and 5,261 under construction, that leaves around 64 percent or 23,700 of the approved homes yet to begin. In Dublin particularly, 5,643 out of the 7,277 or 77 percent approved have yet to start as well.

Speculations on why this could be is developers with not enough funding or they could be hoarding the land expecting the housing prices to further rise, claimed Society of Chartered Surveyors and State bad-bank Nama.

With 36,936 homes approved, it leaves two out of three home plans not being started. Since there is currently a housing shortage, talk of imposing a holding property tax has been circulating. With this shortage of houses there has been a significant increase in housing and rent, especially in Dublin.

Read More

Rents continue to increase over the year by substantial amount

In reference to Irish private sector rents grew by 7.37% from 1st quarter 2016 to 1st quarter 2017 by Robert McHugh on 15 June 2017 in Business World.

Over the course of only a year, the average rent increased by 7.37% from 1st quarter 2016 to 1st quarter 2017. The standardised average national rent being €987, Dublin is one of the highest amongst the other counties as well as Cork and Galway. Looking over the houses and apartments market the trend of rents are continuing to grow.

Outside the Dublin county, the houses and apartment rents at a overall growth rate of 1.3% in private sector rents. Annual growth increased by 7.6% in houses and apartments. The margin is shrinking between the peak of 2007 and the 2017 first quarter however, it is still 8% below.

So far the 19 Rent Pressure Zones (RBZ) are located in parts of the following counties: Dublin, Cork, Galway, Meath. No other parts of the country are currently able to become Rent Pressure Zones, according the to latest Rent Index.

Mr. Simon Coveney, …

Read More