The Institute of Professional Auctioneers & Valuers (IPAV ) has said that urgent measures are needed in the forthcoming Budget to dramatically boost the supply of new housing stock.
The association was speaking in response to the latest Residential Tenancies Board rental report for the second quarter of 2016, which confirmed the continuing upward trajectory in rents.
“In the seven months to the end of July, 2016, from a possible housing stock of 2,023,000 the Residential Property Price Register records just 24,509 sales, down from 26,904 in the same period of 2015 - 9.76 per cent,” Mr Davitt said.
“Dublin sales figures are down a massive 14.75 per cent in the same period. If these figures prevail for the full year, transactions will amount to fewer than 40,000. This is less than 2 per cent of the national stock, a fraction of what should be trading.”
Mr Davitt said a 4 per cent turnover of stock would indicate a market returning to normality: “There is now a very worrying contracting property market that has stagnated and started to decline at a time when it should be at least twice as active to meet huge pent-up demand,” he said. “That is negatively impacting individuals and families and it is hurting the economy.”
Pat Davitt, IPAV’s chief executive, said the severity of the Central Bank’s mortgage lending rules, building costs still at boom-time levels despite house prices being 33 per cent lower, and unequal tax treatment of private landlords by comparison with commercial landlords are impediments that need to be urgently addressed.