Construction BUSINESS

Level of New Dwellings Transacted is “Paltry”

 Breaking News
  • €1 Billion Investment Plan For 4,500 New Homes in South Dublin South Dublin County Council have considered proposals that could deliver up to 4,500 new homes to the area. The total investment envisaged under the ambitious housing plan is in excess of €1 billion. The lands under discussion include: 2,600 new homes at the recently approved Clonburris SDZ scheme, 1,000 new homes at Kilcarbery in Clondalkin, 500 new homes in [...]...
  • M11 Gorey to Enniscorthy Motorway PPP Scheme Opens An Taoiseach Leo Varadkar has officially opened the M11 Gorey to Enniscorthy Motorway PPP Scheme. Funded, constructed and operated by the BAM ACS Consortium, it will reduce travel times from Dublin to Wexford by up to 30 minutes. At the opening Theo Cullinane, BAM Ireland CEO, said: “We are very pleased to be able to open [...]...
  • CRH Divests Europe Distribution Business CRH plc, the global building materials group, has agreed to divest of its Europe Distribution business to private equity funds managed by Blackstone for an Enterprise Value of €1.64 billion* payable in cash. The transaction is subject to regulatory approval. The business being sold comprises CRH’s entire General Builders Merchants business in Europe, including its Sanitary [...]...
  • Next-generation Wind Turbine Blade Pitch Technology Launched Mita-Teknik, a global provider of wind turbine control and pitch technology, has launched its new generation of blade pitch system for onshore and offshore wind turbines. The new Mita Pitch System has been designed to effectively minimize O&M costs, reduce downtime and improve productivity. The Mita Pitch System is a flexible pitch solution for turbines up to 12 MW, which boasts [...]...
  • Tulfarris Hotel and Golf Resort Completes €6 Million Renovation Programme International hospitality management company, PREM Group has completed the first stage of its renovation programme at Tulfarris Hotel and Golf Resort, Blessington, County Wicklow. The group purchased the 90-bedroom hotel in 2016 and since then has already spent over €6 million on the property to return the luxury 18th century Manor House and its surrounding grounds to [...]...

Level of New Dwellings Transacted is “Paltry”

Level of New Dwellings Transacted is “Paltry”
June 18
09:58 2019

Responding to the CSO Residential Property Price Index for April, Brokers Ireland said the low level of new dwellings being transacted is “paltry” – just 18.2pc of all transactions, marking a drop of 8.6pc on the same month last year.

Diarmuid Kelly, Chief Executive at the organisation which represents 1,250 Broker firms, said: “There is a major problem with not enough homes being built to come anywhere near meeting the demand estimated by the ESRI to be of the order of 35,000 per year, with estimates of new builds for this year running at about the 20,000 level.

“While there would appear to be a flurry of interest by institutional investors in building to rent, aided and abetted by superbly generous tax breaks, young aspirational home buyers in contrast must pay an exorbitant series of taxes and levies than can add up to one third of the price of a new home. The really ironic thing is if they can qualify for a mortgage, they will be paying interest rates for the lifetime of the mortgage on these upfront State taxes.”

Diarmuid Kelly.

He added: “It is ‘a deeply unhealthy situation’ where people who cannot acquire mortgages because of the combined factors of insufficient homes being built and strict mortgage lending rules are forced to rent in a market where rental levels are substantially higher than repayments on a mortgage would be, even allowing for a 2pc rise in interest rates, which is not even on the horizon.”

He said studies invariably have found that home ownership is critical to the growth of personal wealth over the longer term.

“We need more homes for purchase and for rent. Home ownership in Ireland has declined from 80.1pc in 1991 to 67.6pc in 2016 according to census figures.  This is a negative trend that carries huge implications for society. A State that cannot use its policy levers to deliver new homes when demand is so strong with rental prices outstripping the costs of mortgage repayments in every area of the country, and substantially so in many areas, is still in deep, deep trouble,” he warned.

He said none of the interventions in the housing market over recent years seems to be making “any kind of meaningful impact in terms of delivering homes at affordable prices.”

About Author

mike

mike

Related Articles

Constrcution Summit

PROMO – Construction Summit 2016 – Sustaining the Momentum

Lean Construction Ireland – Enhancing Ireland’s Competitive Advantage

The Magazine – Construction Business

The Magazine – Construction Summit 2016

The Magazine – Construction Summit

Upcoming Events

  • No upcoming events
AEC v1.0.4

New Subscriber

Subscribe Here



Advertisements