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THERE HAS BEEN an increase in the cohort of first-time buyers who move to the Dublin commuter belt, as average house prices continue to rise across the country, particularly in the capital.
The latest Banking and Payments Federation Ireland (BPFI) housing market monitor found that housing supply continued to grow in the third quarter of this year.
This was mainly driven by a significant increase in apartment building, though BPFI pointed out this started at a low base.
Some 7,600 dwelling units were commenced during the quarter, bringing the total number to 19,856 in the first nine months of 2019.
The monitor identified an increasing drift of first-time buyers moving to the Dublin commuter belt, with 41% of first-time-buyer mortgages on property in this area involving buyers moving county.
Back in 2016, those moving county to the commuter belt – Louth, Meath, Kildare and Wicklow – accounted for 33% of first-time buyers.
Ali Uğur, chief economist at BPFI said first-time buyers continue to face affordability challenges, despite stabilising house prices. He said this places serious limitations on where they can afford to buy, particularly in Dublin and is likely to negatively impact on the wider economy.
“Regional mobility perhaps shows the flexibility of the workforce in the Irish economy, however it should be noted that the pattern of more residential housing activity taking place in the Dublin Commuter belt is likely to put pressure on the infrastructural needs in these areas, which is likely to have a negative impact on the overall competitiveness of the Irish economy,” he said.
“In addition, price developments are seriously limiting potential buyers’ preference, particularly first time buyers, to live in areas closer to where they work or currently live, as average income levels of this cohort of potential customers are affected by the macroprudential framework in place for mortgage lending taking into account average price levels, particularly in Dublin.”
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Not the first time either, seems to be a lot of problems with Ulster Bank IT systems, seems like customers being able to access their cash and pay bills isn’t a priority for them
@OnlyHereForTheComments: word on the street is they need to update their systems and it will cost thousands.
@Karl C: They let their IT guys go a few years ago to save costs and outsourced the work. They later tried to get the guys back but some had already secured new positions. Disaster writ large. Rule #1 don’t get rid of the guys who know how everything works.
https://www.siliconrepublic.com/enterprise/ulster-bank-slapped-with-3-5m-fine-over-2012-it-collapse
@OnlyHereForTheComments: comments closed
@Karl C: Thousands with few extra zeros on the end. Bank of Ireland are spending (have budgeted) a billion to update their systems. Again the result of P45ing their IT staff years ago.
@Sean: the system is RBS IT. Look at it and use it. It is exactly the same. Natwest and RBS was down all day today also
@OnlyHereForTheComments: Microsoft 365 services had issues this afternoon, likely to be related to that
At this stage the banks need to be given huge fines for every day (or part of) their it systems are down. It’s pretty obvious they are skimping on investing in them.
@Niall Bourke:
That’ll only benefit the revenue. Should have to give every account holder €10 for every hour the systems are down. That’ll sharpen focus real quick.
The sooner we can control our own digital money the better.
For this week, new problems next wk.
have your say