HAP fails to assist

The housing market continues to prove that it is hard to penetrate by people who are eligible for social housing. In order to qualify, you must meet a multitude of standards. The most important of these being that you need housing and cannot provide using your own resources, you have a legal right to remain in the State, you are 18 years of age or older, and lastly your net income must be lower than a calculated threshold based off the structure of your family. 

If you are in the spectrum that allows you to receive social housing, then you are likely to be able to utilize social housing support that is run by the local authorities; this tool is known as HAP and it can be utilized in a multitude of ways. 

HAP went into effect on 1 March 2017 and has been available under local authorities. This program was implemented to allow HAP tenants full-time and still keep their housing support. It also gave rise to a more structured approach at organization by making all social housing supports …

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Effects of ending the help-to-buy scheme

The help-to-buy scheme was designed to help first time buyers buy a home. First time buyers are encouraged to buy property through the help-to-buy scheme by refunds of income tax and deposit interest retention tax paid over the last four years. The help-to-buy scheme allows purchasers to claim a rebate  tax already paid of income up to €20,000 depending on the value of the property.

There is a move to end the help-to-buy scheme. This would be detrimental to the housing market. Figures have shown that more than 80% of all first time buyers are relying on the scheme to buy a home.

However, the scheme is scheduled to end at the end of 2019. The government has given no indication of an extension of the help-to-buy scheme.

According to theBanking and Payments Federation, 84% of new property purchases were made by first time buyers with the support of the help to buy scheme. Furthermore, chief economist, Dr Ali Ugur, claimed that the help-to-buy scheme was important for market stability. It was a key component in helping housing supply increase and …

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More families unable to afford homes in Dublin

The Dublin City Councillors agreed to tightly restrict eligibility to qualify for the affordable housing scheme. Thus, fewer families will be able to buy social housing in Dublin.

The Dublin City Council is seeking developers for 400 new homes on three different sites. These homes will be offered for sale to qualifying low and middle income workers. The starting price will be from $116,000. New apartments and homes amounting to 370 new units in Ballyum and Ballyfermont will be the first of several thousand affordable homes in all of Dublin, Fingal and Dun Laoghaire.  The scheme of priority has been approved by councillors by the four local authorities. The scheme determines how prospective buyers will be chosen.

Priority applicants have been defined as those living in the council area for at least 12 month will be the first to chose the newly available homes. The remaining homes will be offered to applicants with children in education in a set distance of the property. Any remaining homes will then be available to those who have a household member with a job …

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Risks to new social divide due to housing crisis

The burdens of the housing crisis continue to have an effect on everyday life. More homes are being built to slowly reach the immense demand for housing. In the month of March of 2019, more home were built than were sold.

Although more homes are being built, houses are still too expensive for an average couple to buy a first time home. Builders and developers are hoards land, and this keeps prices high. According to economist, Richard Curran, Ireland is headed for another crash. Curran believes there is a bubble in the housing market. Rents are rising too high while cuckoo funds are buying up too many apartments which causes first time buyers to be pushed out of the market. Furthermore, supply of housing is increasing but not enough to keep up with growing demands.

The number of homes are increasing, however these homes are not demanded. The homes built this year are too expensive and in inconvenient locations. Housing prices are likely to severely crash just as they did in the past.  There are fewer homes being sold at …

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Some immigrants struggle to afford proper housing

The Dublin housing crisis has hit hard all over the county, causing the prices of homes and rent to skyrocket. These high prices have given many people looking for housing no choice but to resort to home or apartment sharing so that they can afford the monthly payments. 

As a full-time, successful employee, it can be hard to find a place that has every aspect on your wishlist due to both lack of supply and prices that rise with every additional feature. Finding a place to live within budget and within expectations can be very hard to do. 

   One group of people that has an extremely hard time being able to afford suitable housing is those who have come over on a student visa. Many young people and adults are drawn from their respective countries to Dublin so that they can attend university or english school. Although there are exceptional resources all across the city for this, one must thoroughly weigh the costs and benefits of living in a city as expensive as Dublin. 

After having the opportunity to talk …

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Falling House Prices in Dublin

According to the Irish Independent, housing prices in Dublin on average are decreasing by just over €1,000 per month. However, property prices in the rest of the state are continuing to rise slowly or remain constant.

Property prices have been determined to have decreased on average of €4,500 in the past quarter of the year. Since the beginning of 2019, property prices in Dublin have fallen by 2.2%. The price of an average home in Dublin is now down to €433,000.

Although the average cost of housing in the capital has decreased, Dublin remains one of the most expensive cities to live in Ireland. On average, properties in the capital cost two to four times more than property in the rest of Ireland. This data was reported from the Irish Independent and the Real Estate Alliance (REA) Average House.

South Dublin has seen the steepest decline in overall average home values. In three months, property prices of South Dublin have fallen by  €6,500. Although progress has been shown in the prices of homes in Dublin, prices are still rising in other counties. Prices of …

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Housing in half of all counties are unaffordable

According to the Irish independent, homes are becoming so expensive that first time buyers cannot afford to purchase a home in half of the counties in Ireland. Not only are the housing prices too high to quantify as affordable, but mortgage requirements do not make buying homes possible for first time buyers. In other words, a buyers average income does not amount to the fund needed to deposit. A buyer’s income on average also does not quantify to high enough earnings to qualify for a mortgage.

The lack of affordable homes have always been an issue in Dublin and Cork, but the trends in the housing market are causing widespread housing unaffordability throughout the state. Recently, a survey conducted by the EY-DKM economic advisory determined Co Roscommon, Co Clare and Co Offlay have been defined as additional counties that are now too expensive for buyers.

The most unaffordable counties of Co Wicklow, Co Kildare, and Co Meath have been defined as the most unaffordable in terms of saving for a deposit. These counties take an average of 15 plus years …

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Government denies the warning signs of Cuckoo Funds

Cuckoo Funds has been recently used to describe big investors investments poured into developing build to rent housing. However, on average the developments funded by cuckoo funds are not affordable for the average individual or family. Some of the main investors that comprise of the cuckoo funds are large institutional investors like pension funds, real estate investment trusts (REITs) and special private rental firms. Investors are increasingly interested in attempting to tap into the growing demand for Irelands rental market.

Cuckoo funds are known for buying properties and charging insanely high and unaffordable prices for the properties. However, the Housing Minister Murphy has denied that housing is unaffordable. Murphy continued to argue and defend the government’s record on housing and claimed that the government has protected renters.

However, individuals have accused the government of ignoring the red flags of activities related to cuckoo funds. Multi-national venture funds have been able to sweep up properties and resell them for immense costs. Cuckoo funds have created 3,000 new housing units in 2018.

The government has not yet claimed to see the dangers …

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Is Long-Term Renting Sustainable?

Lifelong renting is becoming increasingly popular within Ireland’s largest cities. Influential Cork developer, Michael O’Flynn, talked about instances when he heard of people suggesting that up to 50% of houses should be rented. O’Flynn heavily disagrees with this statement and suggests that ideas such as economic and pension polices should be reviewed.

O’Flynn most recently addressed this issue during his discussion at the Institute of Professional Auctioneers and Valuers (IPAV). He set out to prove that retirees could not sustain a long period of renting properties and instead should have a house paid off to retire in. He asked the audience, “There are currently five workers for every pensioner, but the projection is for this to drop to two workers for every retiree by 2050. Have we considered how that will impact on pension income?” The renting model is not affordable for many classes of people and can cause severe economic troubles down the road when savings begin to dry up. Renting can be a great alternative for people moving to new areas or students and young adults in the …

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Finance Minister Announces €1.25 Billion allocated to Social Housing

According to Finance Minister Donohoe, the Land Developmental Agency has identified sites where a potential  3,000 homes could be built. State bodies are working with the government to locate land that can deliver an additional 7,000 units.

Donohoe also pledged an increase allocation of €121 million to the Housing Assistance Payment. This additional €121 million serves as a emergency accommodation. Donohoe reveled a €60 million increase in funding will also go towards emergency accommodations.

Also, landlords will have 100% mortgage relief on loans used to pay for rental properties. This new relief for landlords will be in effect in the next year. This action will help reduce the risk of becoming a landlord.

Homelessness services were also planned to receive an increase of funding of  €30 million. This funding is to help alleviate the burdens of the housing crisis. The total spending on homelessness in 2019 is now boosted to €146 million. Donohoe’s report revealed that housing needs for 25,000 people will be met in 2019 due to the increase in supply of housing stock. The increasing trend in supply of housing has …

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