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Thursday 21 September 2017

Price rise making it impossible to own a home on single income - TD

Dublin TD Roisin Shortall
Dublin TD Roisin Shortall

Rising property prices in Dublin has left it "virtually impossible" for a single-income household to buy their own home, it has been claimed.

Social Democrats TD Roisin Shortall said first-time buyers in her Dublin North West constituency would need a deposit of €36,000 just to get on the property ladder.

Her comments came as the latest figures show that prices jumped sharply in November and are expected to continue rising this year.

Prices across the country were up 8.6pc in the year to November, figures from the Central Statistics Office show.

The rises were strongest outside Dublin. The rate of increase has picked up compared with the same month in 2015 and the previous month.

In the capital, prices rose by 5.9pc in the year to November.

Residential property prices in the rest of the country, when Dublin is excluded, were 12.8pc higher in the year to November.

The west region showed the greatest price growth, with house prices soaring by 16.7pc.

Roisin Shortall said the latest figures show how difficult it is for people to get on the property ladder.

"In Dublin 9, in my own constituency, the average house price is now €357,974. In order to afford such a property, a first-time buyer would require a deposit of almost €36,000 and an income of €92,000.

Gap

"These figures highlight the massive affordability gap for people trying to buy their own home," Ms Shortall said.

"It is virtually impossible for a single-income household to buy an average home.

"Failure to ensure housing affordability represents the biggest failing of the current and previous governments and has major implications for the cost-base of the whole economy, as well as people's ability to start a family."

Strong rises countrywide were due to demand, more mortgage approvals, supply shortages and the easing of Central Bank lending rules, said Goodbody's Dermot O'Leary.

Conall Mac Coille, economist at stockbroker Davy, predicts prices will jump by more than 10pc countrywide this year.

He described as "enormous" November's 1.5pc rise.

"This all comes ahead of the Government's Help to Buy scheme and the loosening of the Central Bank mortgage lending rules - which will surely push price inflation higher still next year," he said.

Meanwhile, the Institute of Professional Auctioneers & Valuers (IPAV) said prices will continue to spiral until supply moves closer to demand.

"It is not at all surprising that prices outside of Dublin would be increasing since prices have been very subdued in many parts of the country and little or no stock has been built," IPAV chief executive Pat Davitt said.

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