Over 60% of people expect house prices to rise by 5% or more in the next twelve months

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Over 60% of people expect house prices to rise by 5% or more in the next twelve months

Two thirds of people expect property prices to rise over the next 12 months – most by up to 5% - according to a new property consumer sentiment survey.

According to the survey, 42% expect prices will rise by up to 5%, 18% believe they will rise by between 5 and 10% while 4% expect them to rise by over 10%.

However, the survey of 1,700 people by leading property website MyHome.ie also found that a significant 20% believe they will remain unchanged while 15% expect them to fall.

Forty per cent said of those surveyed said they expected to buy a new home in the next 12 months, with 34% saying they were undecided and 26% saying they had no plans to buy.

Ninety-three per cent of respondents believe the Government should be doing more to address the housing crisis, including the construction of more social and affordable homes.

When asked what other measures the Government should take respondents said there should be increased levies on vacant properties and sites, while vacant properties should be purchased by compulsory order.

Angela Keegan, the Managing Director of MyHome.ie said the findings reflected widespread dissatisfaction with the Government’s handling of the housing crisis.

Given that the Taoiseach has already said the Government would be judged on how it deals with the housing crisis, the fact that the overwhelming majority of people believe they should be doing more, will no doubt be a concern. It was also interesting to see that while awareness of the ‘Help to Buy’ scheme was quite high amongst first time buyers at 72%, the awareness of other schemes such as Rebuilding Ireland Home Loans and Mortgage Allowance Scheme was much lower at 12%, while awareness of the Shared Ownership Scheme was lower again at 4%.”

According to the survey 31% of First Time Buyers were aged between 25 and 30 while 29% were in the 31 to 35 age group with a further 16% in the 36 to 40 cohort. Ms. Keegan said the rising age profile of the group had been a recurring feature of surveys in recent years due in the main to the shortage of affordable housing.

Seventy-two per-cent of First Time Buyers said the biggest challenge they faced was finding the right property, while 17% said it was meeting the required deposit for a new home. While two thirds of FTBs were renting, a third were still living at home and that has also been a feature of family life over the past decade as younger buyers live at home longer in order to save for a deposit” Ms. Keegan said.

What are the key features all buyers are looking for in their new homes? Somewhat surprisingly being close to a good network of public transport is now viewed as the number one priority by most respondents, ahead of proximity to shops with schools/creches in third.

While proximity to schools would previously have been viewed as the key amenity, lengthening commute times have now pushed transport links to the fore. When it comes to house type, the three bed is the most popular while twice as many people want to buy a second-hand home as opposed to a new one. The garden is the most important feature of a home for most people followed by an open plan kitchen and off-street parking” she concluded.

Article Published: 30/10/2018