25 March 2025
House Prices – Emergency Planning Rules Needed – IPAV
Commenting on the latest Daft.ie House Price Report for Q1 2025 IPAV, the Institute of Professional Auctioneers & Valuers, noting the average rise of 3.7% for the first three months of the year said while it remains to be seen if these asking prices convert to actual sales prices agents are reporting “sale price intensity.”
The CSO Residential Property Price Index last week found that month-on-month in January there was no increase in prices. (The index records prices based on Revenue stamp duty returns with a 44-day submission deadline).
Pat Davitt, IPAV’s Chief Executive said if the level of increase in the Daft.ie report were to be replicated throughout the year it would be almost 15% for the year, coming on top of an actual 10% increase in 2024.
“One would have to think this is certainly unsustainable that this could go on at this level,” he said. “It’s a market that best serves those on high incomes and/or those with financial support from family, and it reverberates across into the rental market too.”
And he said there is no debate on the lack of supply. “It is extreme and something that is corrosive because when supply of new homes is tight owners of second hand homes who want to move stay put.”
He said all eyes are now on the Government and its intention of delivering fundamental change. That change may have to be to dispense temporarily with current official planning rules and allow people to build under emergency planning rules.
“If this current situation is to be recognised truly as a housing emergency, then emergency powers will have to be brought forward,” he said.
“We wish the Government well but we would caution on delaying changes until the Budget later in the year. We just don’t have such a luxury,” he said.
He said housing policy has been “haunted by ideological babble and political debate and an absence of understanding of real market dynamics.”
And he said the new housing tzar, as reported, would need strong powers to effect fundamental change.
Ends