Home buyers borrowing deposits from family due to tough mortgage rules
Most first-time buyers and movers say they are being severely hurt by the mortgage restrictions introduced by the Central Bank.
At least seven out of 10 new buyers and movers said they were being hit by the controversial rules, the vast majority negatively, according to new research.
Four out of 10 will have to borrow from family and friends to get a deposit together, the survey showed.
Those yet to start saving to buy a home expect it to take six years to get the money together for a deposit.
The lending limits have proved hugely controversial, with claims they are making it more difficult for millennials in particular to buy a home.
The survey was commissioned by the Irish Brokers Association, the Banking and Payments Federation, Ibec's Property Industry Ireland, the Society of Chartered Surveyors, the Construction Industry Federation, and estate agencies including DNG, and others.
It was conducted by Behaviour and Attitudes, among 1,072 potential home buyers - those in the process or those intending to buy.
It will form the basis of individual submissions by the different groups to the Central Bank's review of the rules.
The closing date for submissions on a review of the lending limits is today, but Central Bank Governor Philip Lane said submissions will need to be supported by "high evidential threshold" to convince him to change the rules.
The Behaviour and Attitudes survey found:
• That 42pc said they will have to borrow from family to fund the deposit. A quarter of those intending to buy have already factored in a gift to help them.
• The survey found 52pc have excluded the area where they want to live as they cannot afford it.
• Some 35pc of those surveyed spontaneously referenced deposit size as a negative, with an equal number referring to high prices.
• Six out of 10 potential first-time buyers were paying high rents while trying to save for a deposit.
The researchers comment: "The social cost is high, with many moving away from family networks and to areas of lower amenity or infrastructural inappropriateness (poorer transport, childcare facilities, schools, roads, and further from work)."
Recent Central Bank research showed that the average first-time buyer is coming up with a deposit of €61,000 for a home.
That is seen as beyond the capacity of most ordinary workers.
Critics said only those with rich parents are able to buy.