herald

Tuesday 23 October 2018

One in six worry they will never afford a home, survey shows

Rent in Dublin is €1,923
Rent in Dublin is €1,923

Nearly one in six people doubt they will ever own their own home.

A survey of 5,000 people found nine percent agreed that owning a home was something they were unlikely to achieve.

A further seven per cent of respondents "somewhat agreed" they may struggle to buy a place of their own.

Recent data from the Central Statistics Office (CSO) showed house prices have been increasing by 12.4pc a year.

In December, research from estate agents Savills said 19pc of the population were renting, the highest proportion since records began.

Meanwhile, the price of renting has soared, especially in the capital.

In May, property website Daft.ie reported the average rent in Dublin city centre was €1,923 a month.

In Cork, the figure was €1,210, while Galway rents averaged €1,131.

Conor Faughnan, consumer affairs director with the AA, whose home insurance branch carried out the house-buying survey, said that even among those under 35 there was a consensus that home ownership is an important milestone.

Delay

"In previous decades, those app- roaching their mid-30s would have been on the verge of entering the property market," Mr Faughnan said.

"But a lack of supply and rising costs is forcing this cohort to question if they will ever own a home, or at the very least delay purchasing for several more years."

The study also found a significant generational gap in attitudes towards home ownership.

Of those respondents under 35, 18pc agreed they were unlikely to ever be in a position to buy property, with 15.5pc partially agreeing with this claim.

Central Bank governor Philip Lane said in June he was confident house prices will "cool off".

The AA survey comes after research from Aviva, published last month, found similar concerns about "forever renters".

It found one in four of those who want to own their home believe they will never be able to.

Not being able to afford to save for a deposit was cited as the main reason home ownership is unattainable.

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