A lot has changed since our last Mortgage Monitor in September. The government have revealed their hand for what they are going to do to tackle rising rents and we have seen the demand for family homes continue to increase.
Our mortgage monitor continues to track the momentum and sentiment of consumers in the Irish property market as always we spoke to 1,000 Irish people many of whom represent the 540,000 Irish people looking for somewhere to live.
Looking forward over the next 12 months we can see that the 15% of the population who are hunting for property are the most optimistic for the the year ahead. It is possible they are in the property market because of their optimism or maybe they feel that they have to be to face the challenges ahead.
This optimism is surely going to fuel the market going into and through 2016. However despite the government announcing 20,000 new build housing units we are still seeing a consistent expectation of house prices to rise by 11% at a national level.
Similarly with rents, despite new measures being announced we are still seeing that people expect rents to increase at consistent levels over the next 12 months. Possibly the noise and talk around these new announcements has not fed through to people however it will be interesting to see in the next wave of our mortgage monitor if the media talk and noise around the announcements feed through to dampen expectations for rent and prices.
Armed with this positivity going forward into the new year we asked those in the market for a new home where they would like to like. Leinster came out on top as being the most desired region with 58% saying that they would like to live in one of the new builds there. Within Leinster, the south Dublin region was the most popular with 18% saying they would like to live here. With this in mind it's clear that the demand for suitable housing will be highest on the east coast. This highlights the need for services to be planned in accordance with where the demand for housing lies.
Over the past 12 months we've seen many changes and developments in the Irish property market. While sentiment has remained largely the same towards increases in rents and prices our opinions and attitudes towards market interventions has changed. Looking forward into 2016 it's clear people who are in the market are optimistic and are ready to spend, the question is can the market accommodate them?