Brokers Ireland Warns of Financial Impact of Inability to Buy Homes at Affordable Prices
Responding to the latest CSO house price figures indicating continuing house price growth of 12.1% in the year to March in Dublin and 13.4% elsewhere, Brokers Ireland has warned that unless supply of properties ramps up more quickly in the near future a whole generation now in their late twenties and thirties, and even beyond, may never be able to recover the financial loss of not being able to acquire a home at an affordable price.
Rachel McGovern, Director of Financial Services at the organisation which represents almost 1,300 firms said supply is crucial to bring some level of stability back into the market. “Throughout the country it’s cheaper to buy a property, if you can get one, than rent. The hunt for the elusive property has become a constantly moving target that has become the norm since the recovery, which came following several barren years after the financial crash.
“That amounts to a decade with an inability to buy a home, the best method, internationally recognised, of creating personal wealth over time, provided it is bought at an affordable price,” she said.
“Not only are younger age groups a decade or so delayed in this aspiration, it is also impacting them by postponing other financial planning, such as that for pensions. This is bad on an individual and family basis but it will impact negatively on society in the years ahead – unless something drastic is done to ramp up supply,” she warned.