The Today Show with Sean O’Rourke had us on to discuss an article written by Charlie Weston in the Indpendent about the strong level of cash buyers in the Irish property market. Marie Sherlock from Siptu the trade union was also on, what followed was a robust conversation where there was some interesting debate but also a lot of agreement on the problems, symptoms and solutions to the ills of the Irish property market.
With an attempt to lift the housing market out of the current crisis it’s in, the Irish government is left to answer one very important question. Is the Help to Buy scheme even helping?
Or…is it worsening the gap of the home hunters who are looking for the ability to buy?
As what is already well known, house prices are soaring. Without the supply of housing increasing at any fast rate, this will continue to be the case.
Therefore, home prices are continuing to rise, much faster than incomes are rising, and the gap between available homes and affordable homes is continuing to worsen.
When looking at reports from CSO, the average wage in Ireland is €45,075 for a full-time employee. That number is, however, much lower as a median, where most of the working class clusters. The median is found at €28,500. A drastic difference and even more of a surprise when finding that, that means, nearly half the population is below that number.
This is where the Help to Buy scheme comes into play.
Introduced just earlier this …
Last week the Institute of Banking held a forum on behalf of the Irish Mortgage market in which Deputy Governor Ed Sibley delivered a speech addressing much of what is prevalent in the country today.
It began by briefing the current housing situation in Ireland. Simply put, it’s dreadful. As many are on the pursuit of suitable housing the “toxic legacies of the financial crisis” are proceeding to cause mayhem throughout the nation.
The forum started by discussing the role of the central bank. The central bank plays a much greater part in the overall mortgage market than one may think.
It is up to the central bank to ensure that “the economic and social good of mortgage provision is prudent, sustainable, and that the best interests of consumers are protected. “
The central bank has had to take extensive interventionist movements in the Irish mortgage market since the financial crisis as Ireland typically experiences extreme economic and human hardships when these certain risks arise.
In order for the mortgage market to function properly, consumers …
We were part of a conversation with Ciara Kelly on Newstalk’s ‘Lunchtime’ show discussing AirBnB and whether or not you can blame it for housing sector problems in Ireland. Our view is that it is part of a healthy market, but where a market is unhealthy you can’t say that it is the source of the disease, rather the malaise in Irish housing generally.
This is an excellent piece which really spells out one of the issues that we face in the Irish housing market. The default position of NIMBY’ism in many areas (Dublin being its epicentre). Some of the conclusions or beliefs that there are absolute answers are clearly way off the mark, but the cut and thrust of the video in terms of people saying ‘no’ and some of the reasons behind it make sense.
We were pleased to be part of a discussion about housing which featured our own analyst Karl Deeter and Sinn Feins Eoin O’Broin to talk about housing.
Deeter was at pains to point out that tenant protection was enshrined under the idea of ‘dual ownership’ back in the 1870’s and O’Broin said that there were other things to consider, it was a measured and interesting debate.