Financial expert says 'something drastic' needs to be done 'to ramp up' housing supplies

Co Kildare residents in their late 20s and 30s, as well as those nationally, 'may never be able to recover the financial loss of not being able to acquire a home at an affordable price', warns a financial expert.

Responding to today’s CSO house price figures indicating continuing house price growth of 12.1% in the year to March in Dublin and 13.4% elsewhere, Brokers Ireland warns that unless supply of properties ramps up more quickly in the near future a whole generation now in their late twenties and thirties, and even beyond, may never be able to recover the financial loss of not being able to acquire a home at an affordable price.

Rachel McGovern, Director of Financial Services at the organisation which represents almost 1,300 firms said supply is crucial to bring some level of stability back into the market.

She said: “Throughout the country it’s cheaper to buy a property, if you can get one, than rent. The hunt for the elusive property has become a constantly moving target that has become the norm since the recovery, which came following several barren years after the financial crash."

Ms McGovern said: “That amounts to a decade with an inability to buy a home, the best method, internationally recognised, of creating personal wealth over time, provided it is bought at an affordable price.Not only are younger age groups a decade or so delayed in this aspiration, it is also impacting them by postponing other financial planning, such as that for pensions.This is bad on an individual and family basis but it will impact negatively on society in the years ahead – unless something drastic is done to ramp up supply."

In the year to March, residential property prices at national level increased by 12.7%. This compares with an increase of 12.5% in the year to February and an increase of 9.8% in the twelve months to March 2017.

In Dublin, residential property prices increased by 12.1% in the year to March. Dublin house prices increased 11.8%. Apartments in Dublin increased 13.9% in the same period. The highest house price growth was in Dublin City, at 14.2%. In contrast, the lowest growth was in South Dublin, where house prices increased 9.6%.

Residential property prices in the Rest of Ireland (i.e. excluding Dublin) were 13.4% higher in the year to March. House prices in the Rest of Ireland increased 13.0% over the period. The West region showed the greatest price growth, with house prices increasing 18.0%. The Border region showed the least price growth, with house prices increasing 8.8%. Apartment prices in the Rest of Ireland increased 13.4% in the same period.