Wednesday 20th November, 2024                         

Rising House Prices Will Impact Sustainability And Affordability, Unless Supply Is Addressed – IPAV

Commenting on today’s CSO House Price Index for September, IPAV, the Institute of Professional Auctioneers & Valuers, said the levels of increases are in line with IPAV’s own Barometer of prices actually achieved by auctioneers.

Pat Davitt IPAV’s Chief Executive said “continuing increases of such levels are not healthy and continue to work in favour of those with higher pricing power and leaves those on average wages struggling with a target that keeps moving ahead of them.”

“Even though in some rural areas homes can still be bought for prices lower than the 2007 peak and for less than the cost of construction, the market more generally right now does not point to sustainability and affordability.”

He said it was notable that the lowest increase in today’s figures, 7.5%, took place in the Mid-East comprising Kildare, Louth, Meath and Wicklow. “These are the counties where many first-time buyers who could not afford Dublin gravitated to,” he said.

And he said achieving sustainability and affordability will not happen until a major effort is made to build more homes for a population that has now reached 5.38 million, rising by 98,700 in the year to April 2024.

Mr Davitt said the Help-to-Buy and the First Home schemes are very successful but should be extended to include second-hand homes.

“But, much more than that is needed to address the magnitude of the problem, such as implementation of the Housing Commission recommendations,” he said.

“It is crucial that this happens because, as we’re seeing, this is adversely impacting individuals and families but increasingly, unless addressed, it will impact future economic growth.”

Ends