Lack of residential property supply is most likely to ensure house prices remain elevated - IPAV

Commenting on the most recent CSO Residential Property Price Index for April, IPAV, the Institute of Professional Auctioneers & Valuers, said the highest increases are now happening outside of Dublin, with three factors at play, the expensive nature of the Dublin market which has resulted in the elongation of the commuter belt; new working norms which are making areas such as the South-East particularly attractive and the sterling- Brexit factor which is seeing continuing high increases in the Border region, 22.1 percent in the year to April.

“The CSO Index is showing house price growth slowing slightly. With interest rate increases and economic concerns arising from rapidly rising inflation and related uncertainty around the invasion of Ukraine one would expect a continuing of this trend. However, given demand, it’s unlikely that there would be any major change," Pat Davitt, IPAV Chief Executive, said.

He said it is not a desirable situation that house prices would continue to rise at current levels.

“Much remains to be done at policy level to increase the supply of homes, along with adjustments to the macroprudential mortgage rules to make home ownership more attainable for those on average wages. Most auctioneers now have a pipeline of buyers on their books for whom suitable properties are not available.

“This is also impacting would be sellers. They do not want to put their properties up for sale, in case they do not find a suitable property to buy,” Mr Davitt added.

Mr Davitt said the Housing Commission recently set up by the Minister for Housing represented a chance of pulling deeply fragmented housing policy together.

 

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