herald

Monday 24 September 2018

Banks hold back housing market

ALMOST 50pc of first-time buyers are gearing up to buy a house within the next 12 months, new research has revealed.

The positive indication for the property market comes as most prospective householders don't have faith in banks approving mortgage applications.

The survey from property website MyHome.ie found that 43pc of people believed that financial institutions were overly cautious when granting mortgage approval.

And the majority of homeowners anticipate further drops in house prices, so it appears as if most are holding back on purchases until later in the year.



Cautious

"Availability of finance was the number one factor for first time buyers, and was also in the top three for existing homeowners," MyHome.ie managing director, Angela Keegan said.

"The fact that so many respondents believe the institutions are over regulated and over cautious reflects the widespread frustration felt by prospective buyers of being locked out of the market. Unless access to finance is freed up, the level of transactions will remain at low levels."

Only 9pc of first time buyers said that they had no intention to buy within the next year.

The banks are stepping up their mortgage approval rates and AIB said this week that it anticipated approving more than €1bn worth of mortgages this year.

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