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The Irish Sun
3 days ago
- Business
- The Irish Sun
‘Completely unsustainable' – Govt blasted for failing to tackle Ireland's deepening housing crisis as prices rise 7%
THE Government has been blasted for failing to tackle Ireland's deepening housing crisis. A new study reveals Advertisement The latest MyHome property report laid bare how asking prices outside The typical residential transaction is now being settled for 7.5 per cent above the asking price. The Labour's housing spokesperson Conor Sheehan stormed: 'House prices are still going in one direction – up. Advertisement Read more in Money 'The latest figures show that the average asking price has surged seven per cent in the last year. What's worse, 'How many expert reports does it take for this Government to admit what people already know? Affordability is completely out of reach for huge numbers of people. 'In my own county of Labour insisted the housing policies of coalition partners Advertisement Most read in Money Exclusive Limerick TD Sheehan said: 'This is Economics 101. We have a supply crisis – pure and simple – which continues to hand all the power to those with deep pockets, while locking out working people. 'Housing for All was meant to solve this. But five years since its launch, the increased supply it promised still hasn't materialised. 'FAILING ON ALL FRONTS' "Meanwhile, Fianna Fail and Fine Gael remain at the beck and call of developers. 'The reality is that the Government is failing on all fronts." Advertisement Conall MacCoille, Chief Economist at Bank of Ireland and author of the MyHome report said uncertainty following He added: "The average mortgage approval in May was up 6.7 per cent on the year, while the typical residential transaction is being settled 7.5 per cent above the original asking price. "Meanwhile, one in six properties is sold by 20 per cent or more over asking price, indicating that competition for homes remains fierce. 'Another factor at play is loosening of the Central Bank mortgage lending rules. The average first-time-buyer borrowed 3.4 times' their income in 2024, up from a 3.2x multiple in 2022. This change has pushed up house prices by €15,000 to €20,000.' Advertisement OUTCOME WILL FALL SHORT The economist said that some improvement in home completions was likely in 2025 but warned that it still would not be adequate enough. He said: 'Whatever the outcome for housing completions in 2025, it will fall well short of the 50-60,000 units required. "Attention should focus on difficult problems surrounding build costs and the viability of apartment development in Ireland over the medium-term.' 1 The Government has been blasted for failing to tackle Ireland's deepening housing crisis Credit: Alamy Stock Photo Advertisement
The Journal
3 days ago
- Business
- The Journal
Housing prices jump as completions predicted to fall 'well short' of units required
NATIONAL ASKING PRICES are up 7% over the year – with some counties seeing jumps of up to 19%. MyHome's report, produced alongside Bank of Ireland, on asking prices for homes in Ireland has been released today. It reports on Q2 of 2025. It shows that asking prices for homes in Galway have reached €350,000 in an increase of close to 13% on the year previous. In Donegal, asking prices climbed up to 19% to an average of €255,000. In Leitrim, there was an increase of just over 13% since the year previous, with asking prices averaging out to €198,000. On top of the increase in asking prices across the country, the report also found that typical residential transactions are being settled for 7.5% above the original price. This trend has been driven by several factors, it reported, which include 'significant increases' in both the volume and value of mortgage approvals, persistently inadequate supply, and the loosening of mortgage lending rules. Meanwhile, the report found asking prices nationally rose by 4% on the quarter, by 2.2% in Dublin and by 5.4% in the rest of the country- meaning the median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Housing completions Advertisement The average mortgage approval in May was €337,000, up 6.7% on the year, and the average first time buyer borrowed 3.4 times their income in 2024. This is up from 3.2 in 2022. The report noted that although home completions are likely to improve this year on last year, the supply will still fall 'well short of the demand'. The author of the report, Chief Economist at Bank of Ireland Conall MacCoille, added that alongside higher mortgages and properties for sale tending to be sold for a significantly higher sum than asked, average mortgage approval in may this year was up 6.7% on the year. The report stated that this was helped by the annual pay growth of 5.6% in the Irish economy. There were 43,070 mortgage approvals in the year to May, up 10.5% on 2024. One in six properties is sold by 20% or more over asking price, indicating that competition for homes remains fierce. 'Another factor at play is loosening of the Central Bank mortgage lending rules. The average first-time-buyer borrowed 3.4 times' their income in 2024, up from a 3.2x multiple in 2022. This change has pushed up house prices by €15,000 to €20,000,' MacCoille said. He said that Irish house price inflation is more likely to return to mid-single digit category with a steady proportion – just under 50% – of first time buyers taking out a mortgage between 3.5 to 4 times their income He said that some improvement in home completions was likely in 2025. 'The '4Dublin Housing Supply Pipeline' figures, the only survey of current homebuilding activity, shows the number of houses under construction in Dublin at end-2024 up 19% on the year.' The figures indicate that at end-2024 there were 16,260 apartments and 3,185 houses under construction on 188 active sites in the capital, up 24% and 19% respectively on late 2023. Related Reads 'They're still rooted in the last war': Taoiseach says banks are not lending enough to Irish builders Explainer: Why does the Government want to overhaul Rent Pressure Zones? However, he warned that attention should focus on difficult problems surrounding build costs and the viability of apartment development in Ireland over the medium term. 'Whatever the outcome for housing completions in 2025, it will fall well short of the 50-60,000 units required.' Newly introduced rent controls would likely serve to eliminate the two-tier rental market, as RTB figures from end-2024 show new tenants were paying on average €240 per month in rent more than those in existing tenancies, MacCoille added. The average time to sale agreed is now 2.6 months. This is close to a historic low and 'indicative of a very tight market'. 'RTB data indicates average monthly rents were €1,670 at end-2024, up 5.5% on the year – close to the softest pace of rent price inflation in almost four years. Rent reforms will likely mean the pricing gap between new and existing tenancies will be eliminated.' It was noted that the threat of US tariffs did not put a dent into the demand for housing within the country. The median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Extra.ie
3 days ago
- Business
- Extra.ie
Central Bank changes send housing prices soaring by €20k
Changes to Central Bank mortgage lending rules have seen housing prices increase by up to €20,000, a new report has found. In 2023, the Central Bank loosened lending rules to allow first-time buyers to borrow four times their income, up from the previous cap of 3.5 times their earnings that was introduced in 2015. The latest report from and Bank of Ireland has found that asking prices for houses nationwide went up by 7% over the last year. This has been blamed on a lack of supply driving intense competition in the market and the impact of looser borrowing limits. Report author Conall MacCoille, chief economist at Bank of Ireland, said: 'One in six properties is sold by 20% or more over asking price, indicating competition for homes remains fierce. Pic: File Report author Conall MacCoille, chief economist at Bank of Ireland, said: 'One in six properties is sold by 20% or more over asking price, indicating competition for homes remains fierce. Another factor at play is loosening of the Central Bank mortgage lending rules.' The typical first-time buyer borrows 3.4 times their income in 2024, up from 3.2 times their income in 2022. Mr MacCoille said this change has pushed up house prices by €15,000 to €20,000. He added: 'That said, the process of rising leverage may be coming to an end. The proportion of first-time buyers taking out a mortgage with a 3.5-to-4-times loan-to-income multiple is now steady, at just under 50%. 'If so, Irish house price inflation is more likely to return to the mid-single-digit territory.' Changes to Central Bank mortgage lending rules have seen housing prices increase by up to €20,000, a new report has found. Pic: Getty Images Outside Dublin, asking prices rose 7.9%, while rates in the capital were up 5.1%, the MyHome report, compiled in association with the Bank of Ireland, found. It said demand for properties is still a notable feature of the market, with the typical transaction being settled for 7.5% above the asking price. This trend has been driven by factors including significant increases in the volume and value of mortgage approvals and the loosening of mortgage lending rules. The median asking price nationally was €395,000 in the second quarter of the year. In Dublin it was €495,000 and in the rest of the country it was €340,000. Asking prices rose by 2.2% in Dublin and by 5.4% in the rest of the country. Joanne Geary, managing director of MyHome, said it is 'promising' that the threat of EU-US tariffs has not had a major negative effect on the market to date. However, she noted that the volatile geopolitical climate is 'particularly unhelpful for the economy'.
Irish Times
3 days ago
- Business
- Irish Times
Irish house prices continue to rise and pharma's tariff options
Irish house prices continue rise despite the negative sentiment about Donald Trump's tariffs and what impact it might have on the Irish economy. owned by The Irish Times, said asking prices nationally rose by more than 7 per cent annually in the second quarter while the Dublin increase was above 5 per cent. Barry O'Halloran reports. Barry also has the details of the Competition and Consumer Protection Commission's letter to the motor industry, warning it intends to crack down on attempts to stop drivers from using independent garages for repairs. Dealers could face fines of up to €50 million for breaches of competition law. It has long been conventional wisdom that a boss who is prepared to reveal fear, uncertainty or some other form of uselessness is in luck, writes Pilita Clark. It's thought they will be more trusted and respected, especially by younger staff who are said to yearn for 'authenticity', and are therefore more valuable to an organisation. There is a strong logic for US pharma companies to continue making drugs in Ireland for non-US markets, writes our columnist John FitzGerald, as he explores the potential impact of Donald Trump's threatened tariffs on the sector here. READ MORE In our Q&A, a reader wonders if Prize Bonds are a good investment. Dominic Coyle offers a view. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers. In Me & My Money, author Eimear McBride explains how her 'pension plan is to die before I'm no longer able to earn'. She spoke with Tony Clayton-Lea. The Changing Times Brewery, which was founded by the families behind some of Dublin's best-known pubs , is expanding the number of premises serving its beers and moving outside the capital for the first time. Colin Gleeson has the details. In a wide-ranging interview, EasyJet founder Stelios Haji-Ioannou talks to Mark Hennessy about his new North-South awards aimed at fostering cross-Border entrepreneurship, his Irish family members, and his relationship with Ryanair's Michael O'Leary. Tesco plans to add 400 new jobs here as part of a €40 million investment to expand its operations with the opening of 10 new stores over the next 12 months. Barry O'Halloran has the details. In our Opinion piece, Bank of Ireland executive Susan Russell says the EU could crack down on fake digital ads by forcing online platforms to ensure they are dealing with a reputable entity, especially as they earn income from these scam ads. BP's woes persist in spite of talk of a takeover by Shell , which the company has denied. Stocktake offers a view.
Irish Times
3 days ago
- Business
- Irish Times
Continuing supply crisis sees house prices rise 7% over last three months
A continuing squeeze on the supply of homes boosted property prices by 7 per cent in the three months to the end of June, new figures show. Property website said house sellers sought an average asking price of €395,000 in the second quarter. Its quarterly assessment pointed to strong demand and 'persistently inadequate supply' for the latest rise in the cost of buying a home. 'The best that can be said about Ireland's housing market is that the supply situation isn't getting materially worse,' it said in a report published on Monday. READ MORE 'At end-June 2025 there were 12,563 properties listed for sale on MyHome, up slightly, by 1 per cent, compared with the same period of 2024.' MyHome tracks asking prices, which is the price at which homes are first offered for sale on the market. The report described the housing market as 'very tight'. Conall Mac Coille, Bank of Ireland chief economist and the report's author, predicted house building this year will fall short of the 50,000 to 60,000 new homes needed annually to counter the supply crisis. 'Attention should focus on difficult problems surrounding building costs and the viability of apartment development in Ireland over the long term,' he argued. However, the report noted that official figures show the number of sales is rising. So far this year, 22,000 homes have changed hands, an increase of 2 per cent, according to the Property Price Register, compiled by the Revenue Commissioners. Those properties sold for an average of €445,000 each, noted MyHome, which is owned by The Irish Times. Its report, published in association with Bank of Ireland, showed that over the three months to the end of June, properties sold for 7.5 per cent more than the asking price sought by sellers. Those asking prices averaged €395,000 nationally. In Dublin, sellers sought €495,000 in the three months to the end of June, 5.1 per cent more during the same quarter in 2024. In the rest of the Republic, owners upped their demands by almost 8 per cent to €340,000 on average, the figures show. MyHome does not expect Dublin's slower rate of inflation to last long as buyers ended up paying 9 per cent more than asking prices, indicating tough competition for homes. Regional prices include the capital's commuter belt in counties Kildare and Meath, where asking prices rose 8.3 per cent, and in Co Wicklow where vendors sought 9.6 per cent more than during the same period last year. Recent easing of rules governing how much banks can lend to homebuyers contributed to increased demand and added between €15,000 and €20,000 to prices, Mr MacCoille said. MyHome's figures followed Saturday's Community Action Tenants' Union protest in Dublin where demonstrators said that owning a home had become 'completely inaccessible'. Rents averaged €1,670 per month at the end of 2024, up 5.5 per cent on the year, while the recent Consumer Price Index showed they increased 5.2 per cent in the 12 months to May, MyHome noted. Joanne Geary, the company's managing director, noted that the risk of an EU-US trade war erupting as a result of President Donald Trump's tariff threats had not dented the Irish property market. 'As ever, we need to focus on what we can actually control, which means continuing efforts to significantly increase our national stock of properties, and urban apartments in particular,' she said. Rival website recently reported that house prices rose 12.3 per cent in a market 'starved of supply'. Estate agent, Sherry FitzGerald calculated that the number of homes to rent fell by 43,000 over the last five years.
