While the Central Statistics Office (CSO ) residential property price index shows inflation nationally increasing to 11.9 per cent in May, it is important that the Government is not forced into panic measures such as ending the Help-to-Buy scheme.
This is according to the Institute of Professional Auctioneers & Valuers (IPAV ). Pat Davitt, IPAV’s chief executive, says prices are still 29.5 per cent (Dublin ) and 34.7 per cent (rest of Ireland ) lower than their peak, and that now is not the time for the Government to panic.
“The CSO figures also show that a massive 91.5 per cent of the dwelling purchases filed with the Revenue Commissioners in May were for existing rather than new buildings, and of course the Help-to-Buy scheme, as currently constituted, applies only to first-time buyers of new homes,” Mr Davitt said.
The IPAV say what is needed is a whole-of-Government approach to deal with “the absolutely chronic issue of the lack of supply”.
“These latest figures show an increase in purchases of 6.5 per cent compared to May 2016,” Mr Davitt added.”That is merely an increase from an extremely low level of 2,881 to 3,067 in a market which some estimate needs 50,000 new homes per year.”
Mr Davitt and the IPAV are calling for more dramatic interventions by the Government in order to boost supply.