Industry & Business

Affordable Housing Scheme Needed For First Time Buyers

 Breaking News
  • Greencore to Divest US Business in $1 Billion Deal Greencore Group, the Irish and UK convenience food business, has agreed to sell its entire US business to an affiliate of Hearthside Food Solutions for US$1.075 billion (£817 million) on a cash and debt-free basis. Hearthside is a major US contract food manufacturer with a heritage in US food industry outsourcing. The disposal will leave [...]...
  • Research and Innovation Critical to Business Success Post Brexit The Managing Director of the Industry Research and Development Group (IRDG) says increased investment in research and innovation by both the business sector and the State is critical in order for Irish businesses to survive the hard hitting impact of Brexit. Denis Hayes says despite budget 2019 proposals State expenditure on research and innovation will [...]...
  • Irish Distillers to Invest €150 Million in Sites in Cork and Dublin Irish Distillers has announced investment of over €150 million in its sites in Cork and Dublin to meet demand for its products as the Irish whiskey renaissance continues apace. This is accelerated by the continued growth of the company’s flagship Jameson brand, which is now in double or triple-digit growth in more than 80 markets [...]...
  • CM Precision Components Opens New Purpose-built Factory in Downpatrick Downpatrick-based CM Precision Components Ltd has officially opened its new 16,000 sq ft manufacturing facility at Invest Northern Ireland’s Killough Road Industrial Estate. The advanced engineering firm has invested almost £1 million in the construction project, to expand its production capabilities and meet the growing demands of its customers. CM Precision Components produces precision machined components for [...]...
  • Arkphire Secures New Investment IT solutions and networking company, Arkphire, has announced that Bregal Milestone, a private capital firm, has completed an investment into the business. The investment by Bregal Milestone comes from their new €400 million pan-European fund dedicated to investing in high-growth European companies. Typical commitments from Bregal Milestone range from €20 million to €60 million. Arkphire provides [...]...

Affordable Housing Scheme Needed For First Time Buyers

Affordable Housing Scheme Needed For First Time Buyers
October 02
09:50 2018

The effects of the Central Bank Lending Rules are now clearly showing in Ireland’s property prices. Since the measures were tightened in January, inflation in the residential market has stabilised significantly, giving way to more sustainable property prices. In figures released today by DNG, Q3 2018 saw house second hand price inflation in Dublin of just 0.4% compared with a 2.1% increase for the same period in 2017.

Research by DNG, the leading seller of residential property in the Dublin area, suggests that homebuyers in Dublin are also benefitting from the stabilisation of the market. Mortgage exceptions have essentially run out in the capital, leading to price inflation in the residential market stabilising significantly and giving way to more sustainable property prices. Inflation rates across Dublin averaged just over 0.4 of one percent in the last quarter and the latest results from the DNG House Price Gauge show that second hand house prices in the capital have risen by 4.6% over the last twelve months.

Paul Murgatroyd.

However, DNG’s Head of Research Paul Murgatroyd strikes a note of caution, highlighting that prices of entry level homes in the capital are continuing to rise at a higher than average rate, having increased by 8% in the year to September.

Commenting on the results, Paul Murgatroyd said “The latest results confirm that the trend of stabilising house prices in the capital is continuing as this year progresses. The Central Bank’s macroprudential lending rules, combined with the increased supply of new residential dwellings across the capital, has served to limit house price inflation in the Dublin resale market.”

He continued “As a result, price inflation in the market has moderated, with prices having increased by 4.7% in the last twelve months, compared to a rate of 11% for the year to September 2017, and this more sustainable rate of growth is to be very much welcomed.”

It is worth noting that, on average, residential prices in Dublin have now risen by 88% from their low point in 2012 but still remain 37% below their previous peak in 2006. The DNG research confirms that increased levels of residential construction in Dublin along with the Central Bank rules are helping to control inflation in the capital.

Chief Executive of DNG Keith Lowe welcomed the Q3 findings saying: “These figures are good news for buyers and sellers as Ireland’s property market stabilises. The focus for government and policy makers now needs to be on ensuring sustainable flows of mortgage finance to allow buyers to enter the home ownership market.” Lowe continued “Our findings on the cost of entry level homes sector also indicates that Budget 2019 is the right time for Government to introduce a new Affordable Housing Scheme. Taking an equity stake in the property allows Government to easily improve affordability for hard-pressed first-time buyers, many of whom are currently caught in the rent trap.”

About Author



Related Articles

New Subscriber

Subscribe Here


National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories

Upcoming Events

  • No upcoming events
AEC v1.0.4