Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE AVERAGE AGE of first-time home buyers is now 34, according to a group representing estate agents.
This average age has jumped from 29 in 2006 and even from 33 just 12 months ago says the Real Estate Alliance.
The REA blames a number of factors for the delay in young people buying houses, saying that they are being priced out above a certain level.
“A definite two-tier system has emerged over the past year nationwide, with €160,000 emerging as the breaking point for interest from buyers in that age group, ruling out most properties in Dublin,” REA chairman Michael O’Connor said this morning.
O’Connor also says that another factor pushing up house prices, especially in rural areas, is an increase in foreign-born nationals living in Ireland who are now buying homes.
In areas such as Carlow, REA agents are reporting that 30% of first-time buyers are now from eastern Europe, a percentage that has grown rapidly over the past two years.
The REA has been vocal in calling for the Central Bank to row back on its mortgage deposit rules with O’Connor describing them as “over-restrictive” and causing a “two-tier system”.
“The introduction of the Central Bank’s requirements, combined with higher rents, has made it increasingly difficult for young people to save deposits, especially in Dublin,” he argues.
“House ownership is now off the table for many couples earning average salaries, with their only hope of purchase now coming from an injection of outside help, usually from close relatives.”
Under the Central Bank rules introduced last year, borrowers are expected to arrive to market with at least a 20% deposit saved for the value of the house they hope to buy. For first-time buyers the rules are slightly more lax, with just 10% of the first €220,000 required, and 20% thereafter.
The REA says it welcomed the rules at the time but that they are now “not reflecting” the market.
To embed this post, copy the code below on your site
yeah when most people struggle to earn more than 35K EUR, the numbers just don’t add up. Best hope for anyone is to leave the country, work in a higher salary environment for a few years, and come back with a suitcase full of cash.
Of course, this increases pressure on the rental market also. If people can’t buy, they have to rent. The rent is the equivalent of a mortgage anyway. This system all round, seems totally unsustainable. Perfect storm. All of it was foreseen years ago.
The Irish are slow learners.
As i understand it a lot of people would struggle to earn significantly less than 35k a year.
Steve what would you have us do? We either rent or buy. That’s the choice unless you know something different to do?
At least Oishin and Fiachra have mumsy and Dadums in Dublin.
And Johnno and Jacinta will just knock out a couple of sprogs and the corpo will give them a free gaff in the area they grew up.
It’s the people in the middle who are screwed.
Foreign born nationals. Also known as people who work and save.
I’m 25 right now, and I couldn’t see myself owning a house in the next 10 years. Many, if not the majority, of my friends are in the very same situation. It’s just not possible for an average person to do it anymore
wait for the next property crash, in about 3-4 years time.
I saw many of the 30 something generation get wiped out due to this insatiable need for home ownership, and the subsequent crash meant job losses and emigration too. But not to worry, FF will be back in power soon so we can bankrupt the country again like we do every 20 years or so.
The need for home ownership has been a tradition in Ireland for generations. The housing crash was the result of greedy banks offering unsustainable mortgages and re-mortgages to the increasing value of property, rather than lending money based upon repayment criteria. Greed has been inherent in this country since property and building land began to rise at an unprecedented rate at the turn of the millennium. Traditionally a house would be a family home rather than just an investment property and a mortgage would be a long term undertaking rather than just a step up the property ladder. Many of the people who suddenly found themselves in negative equity and no longer able to pay their mortgage really shouldn’t have ualified for morgages in the first place if the banks were doing their job properly.
And we have a cowboy rental property market.
I think very strict regulations need to be created for the rental property market – and landlord TDs must be identified whenever they are speaking on this issus as they cannot be trusted to act fairly.
There aren’t enough houses being built – simple as that.
More houses means lower prices and more options for rent.
there are houses being built but the problem is they are in such high price brackets that there is no hope of first time buyers getting close to affording them. Honeypark in dun laoghaire for example 3 story semi detached houses going for upwards of 400,000
There are plenty of houses available in rural parts, just no jobs to sustain them…..
Purchased my house in 2009 when I was 22. It just made sense to pay for a mortgage than pay rent every month. Yes there’s a few extra charges but it worth paying that bit extra to have somewhere that I can call mine.
Owning a house will soon only be for the Elite.
Referendum on “Right2Home” like German Constitution only long term answer. Else your kids and grand kids will continue to be at the mercy of financial predators to get a roof over their heads ……
https://www.change.org/p/irish-government-call-for-referendum-on-right2home-in-ireland
The only reason Germany was able to have such good rental protection is due to war. The private housing was destroyed along with all the deaths meant there was a massive shift in ownership and regeneration. As part of the of the lessons learned from WWI there was massive investment into housing where large companies provided housing. The rules for tenants are also very strict which allow for rental properties have a better grasp on income.
You want the same here destroy the housing in the country and kill off a chunk of the population. Then get massive inward investment with strict rules.
Here somebody can stop paying rent and then it takes a year plus to get them out legally. Then you will never see the rent money owed and nothing happens to tenants who are free to do the same again.
Can we talk about abortion?
Every other topic of the Journo is about abortion. Why not this one?
cant afford abortions when you’re saving for a house.
We get it Tom, you don’t like abortions. Don’t click on the articles so or try to take over a different article that has nothing to do with abortions.
Screw that, Steve, there’s no time for ridin’ when you’re working your ass off to pay your huge mortgage either!
I wonder why that is????
Do you every really own anything or does it own you? Goverment policy’s such as decentralisation cause huge amounts of housing stock to be built in now unsuitable locations. NAMA could has sold houses to first time buyers but that was going to be to slow in a fire sale instead better to sell them to foregin investors who could make more profits for unknown bondholders. The irony is that we can afford 50 million to rebuild goverment offices in Dublin but we have no money to build houses. Every council built new offices for city councils who have now being disbanded. From planning departments to goverment ministers all that happens is meeting to discuss every crisis they create because no one is ever held accountable. Every solution never fixes the problem only wastes more taxpayer resources. You would think they would be sick of brown envelopes and sterling pay offs by now but instead the want more pay and expences. Maybe come the local elections people will have had enough and vote for change.
There isn’t really any irony in being able to get money to replace a government building and not having money for social housing. The new office building will save money on maintenance be cheaper to run and they have an asset. Social housing is a huge ongoing cost that eventually gets given away at rock bottom prices to those living there.
I love the caption above
About the author
‘His name’
That tells me a lot.
Did they teach ye how to proof read in tabloid school?
Capitalism has its benefits however when it comes to a home to raise a family this should not be left up to the invisible hand! A government owned mortgage bank with stable and low interest rates should exist. It’s immoral to trade a roof over your head in the private markets.
have your say