According to Census 2016 Ireland's property crisis is worsening. One of the main causes of this is the amount of housing stock coming on to the market. Latest census figures show that between 2011- 2016 Ireland’s housing stock grew only by 8,800 units (0.4%) compared to 225,232 units between 2006 – 2011.
To add to this, recent housing reports by My Home (Q1 2017) and Daft.ie (Q1 2017) have indicated that the new Central Bank rules around lending to first time buyers is inflating the market. Off the back of this we decided to ask the population what they would do with central bank rules if they were in charge. Would they keep the rules as they are, change the rules but not back to what they were or revert the rules back to what they were? For clarity we defined the central bank rules as:
“Currently the Central bank allows first time buyers to borrow any amount with a deposit of 10%. Previously they required a deposit of 10% for borrowings up to €220,000, and 20% on any additional borrowings.”
Interestingly we found that just half (47%) of the population are aware of the central bank rules on property purchase for first time buyers.
Of those who are aware of the rules there is split between what they would do moving forward. Over a third of people would keep the rules as they are and let them bed in and take effect fully, while 29% would change the rules but not back to what they were. 18% would revert to what they were, while 16% don’t know.
The sentiment in the market is still that rents and property prices will increase. This is not a surprise with the confirmation of a lack of supply of housing and market intervention driving up prices.