Commenting on the most recent CSO Residential Property Price Index for January IPAV, the Institute of Professional Auctioneers and Valuers, said auctioneers throughout the country are seeing extremely strong demand for homes that they are unable to satisfy because of a lack of supply.
“The strong increase of four percent in prices outside of Dublin has been influenced by many now working from home and seeing that to be the future, even if not on a full-time basis and also the fact that properties in many areas outside of Dublin are still well below the prices of 2007,” Pat Davitt, IPAV Chief Executive, said.
He said builders must get back, safely, to building more homes.
“It is in nobody’s interest that prices would continue to rise at such a level and affordability is a real problem for those on average wages, many of whom are being forced to rent, at prices substantially greater than the cost of servicing a mortgage.
“The Central Bank mortgage rules are just too severe for this cohort of the population,” he added.
He said it remains to be seen if the promised Affordable Purchase Shared Equity scheme where the State will provide equity support to those seeking to buy homes but are unable to secure the full mortgage to do so, will address some of this sufficiently.
He said the Housing Commission promised in the Programme for Government needs to be set up urgently and involve all stakeholders in the housing market.