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LAST UPDATE | 12 May 2021
THE COST OF houses and apartments increased by 3.7% nationally in the year to March, according to the latest data from the Central Statistics Office (CSO).
This compares to an increase of 3% in the year to February and an increase of 0.9% in the 12 months to March 2020.
The data comes as the government has again defended its housing policies in the Dáil, with Taoiseach Micheál Martin told that people would be on the streets protesting if it wasn’t for the Covid-19 pandemic.
The CSO Residential Property Price Index for March showed that in Dublin, residential property prices saw an increase of 2.5% in the year to March, while property prices outside Dublin were 4.9% higher.
In Dublin, house prices increased by 2.8% and apartment prices increased by 0.7%.
The highest house price growth in Dublin was Dun Laoghaire-Rathdown at 3.9%, while Fingal saw a decline of 0.4%.
The five most expensive Eircode areas by median price were in Dublin, with Blackrock at €615,000 the most expensive.
Outside Dublin, house prices were up by 4.5% and apartment prices up by 10.4%.
The region outside of Dublin that saw the largest rise in house prices was the Midlands at 6.7%. At the other end of the scale, the Midwest saw a 1.2% increase.
Overall, the national index is 14.9% lower than its highest level in 2007.
Dublin residential property prices are 20.1% lower than their February 2007 peak, while residential property prices in the rest of Ireland are 17.3% lower than their May 2007 peak.
The Dáil heard some sharp exchanges on the issue of housing this afternoon, with Taoiseach Micheál Martin being told that people would be “on the street protesting” if it wasn’t for the Covid-19 pandemic.
Sinn Féin, the Social Democrats and People Before Profit all criticised the government’s approach to housing with Martin staunchly defending the coalition, saying that it is committed to “unprecedented funding” for residential construction.
Sinn Féin leader Mary Lou McDonald TD said that “what you have to do here is not rocket science”.
Firstly, end the tax advantages enjoyed by these institutional investors and get them to pay their fair share of corporation tax and capital gains tax. Secondly, impose the stamp duty surcharge on the purchase of residential property by these investor funds. And thirdly, introduce emergency legislation to stop these funds bulk-buying residential developments.
She added: “That’s what you should do, but your answer to each of those sensible necessary proposals is no, no, no. Is this why you led Fianna Fáil back into government, to allow Fine Gael to continue calling the tune on housing.”
In response, the Taoiseach said he led his party into government to “make housing a key priority issue” and “spared no effort to comprehensively develop a range of initiatives”.
We have committed to, in funding terms, the largest social housing programme in the history of the state, and to embed that in multi-annual funding over the next five years. And our target is to build 50,000 social houses, enabling people to access housing.
The Taoiseach added that, in addition, €1.2 billion has been earmarked for urban development to provide services to support house building and €1.4 billion has been made available to Irish Water to help new houses access improved water supply.
He added that Sinn Féin was “more about rhetoric and sloganeering than you are about substance around housing”.
“I’m not going to be deflected by your sloganeering or the degree to which you want to exploit the housing crisis for your own electoral and political advantage,” he said.
Social Democrats’ co-leader Catherine Murphy told the Taoiseach that, “not only do we have a supply side crisis, we have an affordability crisis”, adding that the government was not doing enough.
“All the evidence is that the best method of delivering affordability is the interventionist approach,” she said.
The Taoiseach said the government was intervening in several ways, citing social housing, the Shared Equity scheme and cost rental supports.
“Be in no doubt, right now the government is the biggest player in the housing market.”
Murphy said that money has been spent on housing by successive governments but that in many cases this has been in the form of “top dollar” long-leases paid by local authorities for social housing.
Taoiseach, I think if there wasn’t a pandemic we would have boots on the street, people would be people on the street protesting at this point because there’s a whole generation that have just simply had enough and are not going to take that kind of response.
Rent prices
Meanwhile, the latest rental report from Daft.ie has revealed that the average monthly rent in Ireland during the first quarter of the year was 2.1% higher than the final three months of 2020.
Rents during the first three months of 2021 were found to have had their largest quarterly gain since the middle of 2018.
The report also showed that housing supply has fallen outside Dublin, where the number of homes available to rent was up 20% on 1 May compared with the same date last year.
In contrast, only 1,150 rental units were available to rent outside the capital on 1 May – down one third from the same date in 2020.
The cost of renting increased in every city outside of Dublin in the twelve months to March, with the capital the only city in the country where rents fell from 2020 to 2021.
In the capital, the average monthly rent during the first quarter was €1,974, a drop of 6.5% over the past twelve months.
But rents outside of Dublin are 7.1% higher than they were in the first quarter of 2020, with renters paying €900 extra per year on average.
Nationally, the average monthly rent stood at €1,443 in the first quarter of 2021, up 1.7% over the past year and up by almost 95% from a low of €742 per month in late 2011.
Housing charity Threshold’s CEO John-Mark McCafferty warned that findings of the report, which also showed a drop in the number of homes available to rent, were not good for first-time buyers.
“With a year-on-year drop in the number of homes available to rent nationwide, combined with a lack of affordable homes to buy, prospective first-time buyers remain in an impossible situation,” he said.
With reporting by Stephen McDermott and Rónán Duffy
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group
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Nothing will change until FF & FG are out of government, how many decades of this is it going to take until we learn?
@Anthony Keenan: We’ve had no alternative government in the history of the state so we have no idea. It’s sad to see people so confident in their dismissal of something that has never been tried before.
We’re so conditioned to mindlessly tolerate FF & FG being bad for us on the premise that the alternative is worse. A notion that has no basis in reality since we have no idea but I have a hard time believing another party could be any worse in the housing market considering we’re already the worst in Europe.
@Rochelle: Im all open for another party coming in or a coalition that excludes those 3 parties, but looking at Sinn Feins policies and their members it would be absolutely disastrous for us. From how other countries view us. And from their policies, that sound great, but literally make zero sense in terms of where the money will come from to afford the policies.
@Anthony Keenan: It’s not the ex-terrorists that I have a problem with, it’s their policies. Having said that I can see a coalition of SF and FF after the next election.
@Anthony Keenan: They’re certainly not my preference either and I’ve never voted for them but I feel as if there isn’t a future for me and people my age in Ireland under the FF/FG housing policy so I’m at a stage of thinking literally anyone would be better.
@Rochelle: if Mary Lou had worked in the real world then she might have a chance
@Anthony Keenan: have a look at who Fianna Fáil were celebrating yesterday!
No other than blood thirsty gangster Seán Lemass
Or Fine Gales hero Michael Collins who sent young boys out to murder unarmed men in their beds & at mass
Or are you one of those that think history started in 1972?
@Liam Ó hAodha: where have I mentioned anything about supporting FF or FG?
@Liam Ó hAodha: Collins had nothing whatsoever to do with Fg. How you can claim so is beyond me plus ideology they’re miles apart
It’s laughable how politicians are always the targets of blame when it’s really the civil servant permanent government who are really at the centre of policies across all societal issues. Why is no one asking the highly paid Secretary Generals of each department for explanations on policy failures in health, housing, education, national infrastructure? Let whatever party or coalition get elected whenever – it won’t matter a jot cos they’re just the ones rolled out to take the flack. Poorly run departments with little or no visible accountability will continue to hamper quality progress. Direct the anger where it’s deserved.
@Anthony Keenan: brain dead comments as usual. The north was a different political landscape in the 70s, they did what they could to demand equal human rights for the Nationalist Irish Catholic population. Regarding housing, take a look at house prices in Belfast compared to Dublin thanks to Sinn Fein.
@BradysASAccount: House prices in Belfast are cheaper cause nobody in their right mind would want to live there…..
@Anthony Keenan: people love asking where money will come from for Sinn Féin policies but never ask what magic money tree the extra 2 billion for children’s hospital is coming from, or where the extra money for national broadband scheme is coming from and where the 100s of millions wasted on Irish Water came from
@Anthony Keenan:in dublin we have some of the highest house prices in Europe because it’s just such an amazing place to live. Where did you get your PHD in economics with such an amazing observation???
@Frank Gavin: politicians are the people we elect to ask those questions and give direction to those secretary generals
@Frank Gavin: Why do we both pay the politicians then? What is the point of having politicians on 6 digit salaries when clearly they can’t influence anything in this kip? Why?
@Nigel Hayden: Have a look at the portrait that Leo hung in the Taoiseach office or whoses assassination they commemorate every year
@Anthony Keenan: Where did i mention anything about you supporting FF or FG?
i’m stating the point the EVERY medium – Large party in this state (except Greens) trace back to armed actions, yes that includes Murders and bombings so cop on with your selective Amnesia
@Rochelle: Oh but the north Rochelle! And…. something vague about the IRA!!!!
@Anthony Keenan: is that you paschal ?
@Anthony Keenan: Where do you think the ‘money’ comes from now?
Before everyone has a go at the government for this, don’t forget that thanks to them we’ve a great healthcare system and our cost of living is very very low……..
@TheMinisterForCraic: and our GDP is/was very high. All rosy.
@TheMinisterForCraic: cost of living low !!!!? Probably one of the highest in Europe !
@Michael Legris: We are coming 6th in the European cost of living charts. Only Switzerland, Iceland, Norway, Luxembourg & Denmark are more expensive than us. 3 more years of FG and FF and I reckon we will be top of the chart. Can’t wait.
@TheMinisterForCraic: Half the country are trying to live on peanuts painted up as “salaries”. The cost of living here is off the charts.
@TheMinisterForCraic: Cost of living is low???…utilities, insurance, car tax, fuel etc all way too high. On top of that they wanna throw more taxes in a vein attempt to look like they are saving the planet. And as for health care, I got an appointment for an eye exam in the hospital for 18 months from now, not a surgery or anything major just a basic examination, and that’s meant to be great health care…..we certainly are paying those running our health services 1st World wages that’s for sure
@Michael Healy: 2021: the year sarcasm died. RIP
@Michael Healy: First world rates for third world services.
The trouble with voters in this country is we stick with the familiar. We rant about them, yet scared to give someone else a try. If they mess up then they mess up. However unless we try we will never know, it will be simply speculation. Can they do any worse than the two cheeks of the same ar$e brigade.
House asking prices may have increased by 3.7% But buyers/bidders are driving up the actual sale price. In my location in Dublin a house with an asking price of €450k sold for €525k with 3 bidders driving up the price. And i jave heard of other houses going even higher over thier asking price. So the house price increase does not reflect the true reality of the current situation in the housing market. There is no 100% mortgages now, and these bids seen to be driven by extra savings and lack of supply.
@Brendan Brennan: I’m pretty sure there is “anonymous” bidders , used as a mechanism by someone who depends on a commission from the sale, to artificially drive up sale price.
Why is it called a housing crisis? Maybe looking at it differently it should be called a population crisis…
@Stephen Campbell: brilliant, so all we need to do is euthanize anyone looking for a home and problem solved?
@Stephen Campbell: maybe because it isn’t a population crisis? It is not a lack or resources that we need worry about, more so the grossly unequal distribution of resources.
@Stephen Campbell: great so what your saying is we need people to leave in order for the rest to have a chance, would you like to volunteer so as the first to get lost and let your property go to someone else so, or have you a category of what members of population are over crowding us
@Michael Wall: Is that an option? Which parties policies is it part of cos they have got my number one ;)
@Michael Wall: I’m shocked at your suggestion and at the likes you got . You should not have those type of inclinations…
@Laura Walsh: so where is all these resources you are looking for gone then?
@Michael Healy: category of members? Leave to go where? There is a magical land somewhere with unoccupied accommodation? What are you saying?
Or is is a sign of an inflation crisis? I’ve read many articles and comments on housing here recently and have not come across any discussion on inflation, and central bank policy.
It’s policy to increase the wealth gap, every year. When you add 15%-20% to the money supply each year you reduce the purchasing power of the paper money you earn.
General wages levels don’t tend to even keep up with the relatively useless CPI / RPI measures of inflation (which are a hand picked basket of goods that have little bearing on the actual cost of living).
In fact the huge technological advances of the last 20 years should have made many goods and services more efficient. So despite these natural deflationarry forces we have seen fast rising prices in the things we need…..food, accomodation, insurance etc
It’s only going to get worse as a lot of raw commodity prices have exploded in the last 6 months and this will have to be passed on to consumers as well.
Constant inflation of the money supply benefits governments (debt) and rich asset owners at the expense of the working and middle class.
@lumberjack: exactly, the cost of a decent mobile phone 10 years ago was about €250 now its more like €800-€1000
Cost of car insurance was €500/ year now for 8 years no claims is €900 at 30 years old.
Wages have increased by €5 per hour in that time x 40 hours a week thats €800/month and that with a change of jobs + 2 salary increases
Thats what inflation should be based on
@lumberjack: Steel, Insulation, Copper all nearly up 70% from the pre covid days, this is staggering. Soyabean which is a major protein grain for fattening beef cattle as gone up 110% IN 6 MONTHS. These are the everyday raw material essentials and this is a terrible indicator of what is too come. I honestly think the inflation days of the 80s and the Margaret Thatcher days are upon us. I do think the latest spiels about Inflation from all the top governments is not the true picture of what’s actually happening.
@lumberjack: I’m not the only one… There is a god. This is the message… The ECB is our communal enemy. They are destroying our wealth through money printing. Seriously people buy physical silver gold or cryptos. Get your money out of this system that is designed to guarantee you lose. Bet against debt. Bet against money printing. Bet against the bankers. Bet against inflation. Bet against incompetent and complicit government officials. Buy precious metals and crypto while you can still afford them.
@Jonathan Conway: you are spot on. Ever heard of A proactive Irish government? Neither have I. They will just make up the excuse that they never saw it coming. Act while you still can.
Total overhaul of the ideology and removal of FF and FG, otherwise you gonna be stuck with another lost generation. Housing for all not a few.
@Pavel Shipilov: ideology is the key word. Centre right ideology has failed and more centre right ideology won’t be the solution
Seen some arguments on social platforms not far off calling first time buyers nothing but dramaqueen moaners to what you’d hear on Liveline and more or less backing governments stance on housing. They throw out the nonsense to buy what you can afford and if it is 200kms away, tough luck, sure don’t ya have a gaff now! Attitudes like that is why we are where we are. Ignorance.
29 and will probably never have my own home in my own country.
@Darren Sheridan: …. oh yes you will! and all your young friends too will own their own homes at affordable prices because you all will bring your brains to the Polling Booths and only vote for those who will deliver a Referendum on Housing – THE ONLY ANSWER. Otherwise you will remain enslaved to work to enhance other peoples wealth through Rent.
All young people (and their parents and their grandparents) can sign these Petitions which send an automatic email to Government Ministers demanding a Referendum on Housing.
https://my.uplift.ie/petitions/stop-investors-buying-our-homes
https://www.change.org/p/irish-referendum-on-family-home-special-status
Share and Share and Share …. on every platform
@Darren Sheridan: where ever you live is your own home. You may not be able to afford to buy a property which is the same for most people in most countries. Ireland had the highest homeownership in the world for decades. As we became more like the rest of the world and more international that was always going to change. People really don’t pay attention to how society changes. Double incomes also had a dramatic effect.
When I first started renting with my partner 6-7 years ago there would be at least 40-50 suitable properties (3 bed house) in our area for around 600-700 a month. There are now 2 as of today and they are 1100 a month and 1000 a month respectively. An absolute joke.
Bubble 2.0
Yet the government refuse to fund the Drogheda Northern Route, which if completed will open up a land bank with planning permission for 4500+ houses
Now there’s something you don’t see every day…not
Home ownership in Dublin increased by 8% last year, this is a seismic increase which is not reported anywhere.
Thats 70k people buying a home for the 1st time in Dublin.
I’m guessing these people didnt moan and bitch about everything and just got on with it.
@Bain triail aisti: Linky?
You could gave googled it.
@Bain triail aisti: Yerra shur what could go wrong? Were you born after 2008 by any chance or have you also suffered memory loss like the majority of the population?
Nothing will change fffg do no want the ordinary man or women to own their homes all they want is to keep ordinary people under their control
This did not just happen overnight this has been bubbling up for the last decade. It is now in the Government’s hands and they are 100% responsible to get the Solution. Where is the National Housing Plan and Authority ? It doesn’t exist, Where is the Plan to Restrain Objectors and in particular An Taisce who for a fee of a few measly euros can shackle housing projects and development.
Doesn’t matter who is in government, people like you will be still moaning about something, so your comment is invalid.
@Eamon Morris: Another deluded individual in his Ivory tower finger wagging who’s just not in reality. Again, nowt but ignorance, good man, morto for ya.
He’s a funny man … where is the affordable housing plan they promised to deliver in September 2019? Is it the one with an “affordability” cap of €450k? Small-change to some no doubt. Other opposition parties have already put forward affordable housing plans that are far more ambitious and may well have delivered more. It is rather telling that we faced a virus which shut everything down overnight yet a housing crisis that has been building for a decade, still “needs time” to analyze before taking any proper action.
Really surprised that apartments are not included, does the state think that single people or couples with no children want to buy big houses, rather then a two bed apartment? Or does the state want to condemn people who can’t afford to buy to sub standard rental units?
Also the REITS are paying zero tax, extra stamp duty although welcome, is not exactly a deterrent. The REITS pay ZERO tax on rental income and the vulture funds seem to have some sort of arrangement not to pay any tax.
have your say