Central Bank mortgage arrears published for Q3 of 2016

The Central Bank published the quarterly mortgage arrears figures today, here are the key findings (taken from their press release).

The number of mortgage accounts for principal dwelling houses (PDH) in arrears fell further in the third quarter of 2016; this marks the thirteenth consecutive quarter of decline. A total of 79,562 (11 per cent) of accounts were in arrears at end-Q3, a decline of 3.1 per cent relative to Q2 2016.

The number of accounts in arrears over 90 days at end-September was 56,350 (8 per cent of total), reflecting a quarter-on-quarter decline of 2.1 per cent. This represents the twelfth consecutive decline in the number of PDH accounts in arrears over 90 days.

The majority of maturity categories of arrears, including the over 720 days’ category, declined in Q3 2016. This category recorded a fifth consecutive decline, having declined for the first time in Q3 2015.

The number of PDH mortgage accounts that were classified as restructured at end-September was 121,140. Of these restructured accounts, 88 per cent were deemed to be meeting the terms of their current …

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Pat Kenny Show on Newstalk 106, featuring Irish Mortgage Brokers

Pat Kenny had Lorcan Sirr from DIT and Karl Deeter from our company on to talk about the property market in particular in light of the changes announced by the Central Bank.

The conversation covered many topics in the market and outlined where so many issues in housing are arising.

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2016 Mortgage lending rules submission by Irish Mortgage Brokers

We sent our research and thoughts on the lending rules to the Central Bank as part of their industry consultation process regarding the existing mortgage lending rules.

While we are critical of them in particular for first time buyers, we haven’t had an issue on other aspects of it (such as controls for investors). The submission argues with supporting evidence for 90% loans for first time buyers to be available generally but to keep other controls generally in place, or to do nothing at all and give the adjustments more time to bed in.

Submission is here: 2016 Central Bank macroprudential rules submission Irish Mortgage Brokers

The findings of a survey carried out by Behavior and Attitudes of clients of Irish Mortgage Brokers, DNG and Hooke & MacDonald which was mentioned in the press is also available here: 2016 MacroPrudential review – survey findings

 

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Today FM: The last word, Matt Cooper talks to Karl Deeter & Ruth Coppinger

Karl Deeter was on Today FM’s ‘The Last Word’ with Matt Cooper to discuss proposals by TD Ruth Coppinger to break the law if you are at risk of eviction.

Our view is that the law should be honoured and that to suggest breaking the law ought to be way down the list of suggestions for people with housing difficulties. It would make far more sense to speak to the Department of Social Protection and to use the services and protections that we have set up as a society rather than to take the law into your own hands.

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The cost of turfing out tenants

It is often assumed that landlords don’t want to give people long leases preferring to see people leave and obtain a rent increase where possible. This belief doesn’t factor in several concerns, firstly is that rents are not always rising, that moving is an inconvenience to both tenant and landlord and that there are some hard costs to factor in.

For this reason we created a small basic calculation to show that in many cases the recouping costs equate to more than a months rent and that a landlord would have to increase rents by about 12% to break even.

The other thing that happens is the landlord takes on a new risk of an unknown tenant, good tenants are like good credit applicants, they often don’t pay top rates because of their past performance, a new person might be habitually late, break more, or be more high maintenance.

This is yet another reason that shows the benefit of a long lease to a landlord, equally the tenant also benefits by having the protections of a …

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Newstalk: Breakfast show speaks to Irish Mortgage Brokers

We were pleased to feature on Newstalk’s ‘Breakfast Show’ this week, to our surprise we became an association! To clarify, that was just a title oversight by the presenter, we are still our plain old regular selves working as brokers.

The piece was questioning the validity or need for first time buyer type grants and what it could mean for both buyers and the industry.

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Rent control Europe: France

Population: 66,689,000 GDP: $2,829,192,039,172 Avg. Weekly Earnings: €1,128.44 Avg. Apartment Price (Per. Sq. M.): €13,639.00 For 120-sq. m. apartment in city centre (Paris) Avg. Monthly Rent: €848.59

France boasts the second largest economy in the European Union, and alongside their German counterparts, are responsible for a major portion of the fiscal policy introduced by the Eurozone nations. French legislation is also among the most pro-tenant in the world, and this is coupled with the policies introduced by Francois Hollande, the French Socialist President, which target the wealthy.

Currently, France is faced with housing shortages of record proportions; despite government subsidies and tax cuts incentivising construction of rental properties, household investment is at its lowest point since mid-1999. This lack of investment puts additional stress on companies and consumers to create growth, and spur the recovery forward. Paris in particular is a popular destination for foreign investors, which has caused local legislation intended to curtail this absentee ownership. These housing regulations have made the situation worse, with additional restrictions on rents decreasing investor interest in the area.

There also exists considerable …

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Rent control Europe: Finland

Population: 5,488,543 GDP: $237,111,000,000 Avg. Weekly Earnings: €575.00 Avg. Apartment Price (Per. Sq. M.): €6,214.00 For 120-sq. m. apartment in city centre Avg. Monthly Rent: €887.30

Our second foray into the Nordic countries takes us to Finland; similarly to Sweden, Denmark, and Norway, the Finnish economy enjoyed unprecedented growth from 1999, when it joined the European Union’s single currency, until the recession in 2008. In comparison with the rest of the Eurozone, Finland’s recovery has been strong; in 2012, the public debt in Finland was estimated at 50% of GDP, significantly lower than the beleaguered Germans, for whom public debt was 80% of GDP.

Measured differently, however, the Finnish recovery is less impressive. In Q2 2012, the Finnish GDP dropped by 1%, whereas its nearby neighbour Sweden enjoyed an increase of 1.4% in the same period. In the same year, the Swedish government ran an account surplus of 7% of GDP, whereas the Finnish government operated its first deficit since 1993.

The differences between Sweden and Finland extend to their handling of property: while Sweden is staunchly pro-tenant, the practices …

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