Latest news with #GerardO'Toole
Sunday World
2 days ago
- Business
- Sunday World
Counties where couples earning €100,000-plus would struggle to afford home
Supply problems mean property prices are likely to keep soaring There is also little sign of any easing in affordability pressures. A majority of estate agents who are members of the Society of Chartered Surveyors Ireland (SCSI) expect property prices nationally to increase by an average of 5pc over the next 12 months. The SCSI said calculations it has done show that a garda and a nurse couple on a €107,000 combined salary will only be able to buy in one of five locations it examined. The imagined couple want to buy an averagely priced new three-bed semi-detached home. They are assumed to have the 10pc deposit. They will be unable to buy in Meath, Kildare, Wicklow and Galway. Cork was the only area a couple on such a salary could afford to buy. In the two most expensive counties, Wicklow and Kildare, the couple will face significant shortfalls. The deficit is €65,000 in Wicklow and €22,000 in Kildare for a three-bed home. And this is despite the couple availing of the State's Help-to-Buy scheme, which can see new buyers getting up to €30,000 to put towards the purchase of a home. Estate agents who are members of the SCSI said this shows the affordability gap for ordinary couples seeking to buy their first home. SCSI president Gerard O'Toole said the scenarios his organisation worked out show affordability has become more challenging across various house types and locations. 'While a new three-bedroom semi-detached home is affordable in Cork, and buyers with additional savings beyond the 10pc loan-to-income limit should be able to overcome the gap in Meath and Galway, new three-bedroom semi-detached homes in Wicklow and Kildare remain totally out of reach for people on these salaries,' he said. These findings highlight the persistent structural barrier which exists to homeownership 'In addition, there are thousands of people on lower salaries who will not be able to buy and will require support.' Mr O'Toole said calculations for two- and three-bed terraced houses in the same five locations show affordability being met in nearly all locations. However, the couple would require some additional savings in Kildare and Wicklow in order to buy a three-bed terraced home. 'These findings highlight the persistent structural barrier which exists to homeownership, even for dual-income households in stable public sector roles,' Mr O'Toole said. 'It also underscores broader concerns around housing sustainability, increasing commuter burdens and the potential impact on quality of life.' Property prices are continuing to surge. Photo: Stock image According to the latest SCSI 'Residential Mid-Year Market Monitor' report, over half of agents believe the key factor influencing house prices over the next 12 months will continue be the lack of supply of new housing. A majority of estate agents believe current residential property prices are expensive or very expensive. When asked where they believe we are in the market cycle, 60pc of respondents believe prices are increasing but will level off soon. Some 18pc believe they have peaked and should start to decline. The SCSI report found 70pc of agents are reporting low stock levels of new and second-hand homes. 'Over the past five years, more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market,' the report said.
RTÉ News
3 days ago
- Business
- RTÉ News
Estate agents expect house prices to rise by 5% in next year
Estate agents who are members of the Society of Chartered Surveyors Ireland (SCSI) expect national property prices to increase by an average of 5% over the next 12 months, a dip from the 6% forecast in January. According to the latest SCSI Residential Mid-Year Market Monitor, more than half of agents believe the key factor influencing house prices over the next year will continue be the supply - or the lack of supply - of new housing. 88% of agents believe current residential property prices are expensive or very expensive - up 5% since January - while just 12% believe they are currently fair value. 60% of respondents also said they believe prices are increasing but will level off soon, while 18% believe they have peaked and should start to decline. Property prices nationally having increased by 164.8% from their trough in early 2013, according to the Central Statistics Office. The SCSI include five scenarios involving a couple's earning a combined income of €107,000 in the latest monitor. The purchase prices are average purchase prices of three bed semis from the society's survey based on new housing developments in the five relevant counties - Meath, Kildare, Wicklow, Cork and Galway. The scenarios demonstrate the affordability gap, if any, which exists between the total mortgage purchase limit available to a couple on a garda and nurse income looking to buy their first home based on average new house purchase prices in five different locations. According to these scenarios, a couple on a combined salary of €107,000 who want to buy a new privately built 3-bedroom semi-detached home and who have the 10% deposit having availed of the Help to Buy Scheme along with their savings, will afford to buy in only one of the five locations, namely Cork. The case studies indicate prospective buyers in Wicklow will face a shortfall of almost €65,200 while in Kildare the figure is €22,000. Gerard O'Toole, President of the SCSI, said the new figures show that affordability has become more challenging across various house types and locations. "While a new 3-bedroom semi-detached home is affordable in Cork and buyers with additional savings beyond the 10% loan-to-income limit should be able to overcome the gap in Meath and Galway, new 3-bedroom semi-detached homes in Wicklow and Kildare remain totally out of reach for people on these salaries," Mr O'Toole said. "In addition, there are thousands of people on lower salaries who will not be able to buy and will require support," he said. "These findings highlight the persistent structural barrier which exists to homeownership, even for dual-income households in stable public sector roles. It also underscores broader concerns around housing sustainability, increasing commuter burdens and the potential impact on quality of life," he added. He also said that the lack of new home building across several regions is something many members commented on in today's report. "This is something the Government needs to address through various measures including targeted supports to unlock brownfield sites. If we are to move the supply dial, we also need to see compact growth targets set for local authorities with regular reporting requirements on planning approvals and completions," he said. "While the increased budget for housing and key infrastructural projects announced last week in the revised National Development Plan is most welcome, the success of the plan will be measured by target delivery. That is the litmus test of any plan,' Mr O'Toole concluded.
Irish Independent
3 days ago
- Business
- Irish Independent
Revealed: Counties where couples earning €100,000-plus would struggle to afford a home
There is also little sign of any easing in affordability pressures. A majority of estate agents who are members of the Society of Chartered Surveyors Ireland (SCSI) expect property prices nationally to increase by an average of 5pc over the next 12 months. The SCSI said calculations it has done show that a garda and a nurse couple on a €107,000 combined salary will only be able to buy in one of five locations it examined. The imagined couple want to buy an averagely priced new three-bed semi-detached home. They are assumed to have the 10pc deposit. They will be unable to buy in Meath, Kildare, Wicklow and Galway. Cork was the only area a couple on such a salary could afford to buy. In the two most expensive counties, Wicklow and Kildare, the couple will face significant shortfalls. The deficit is €65,000 in Wicklow and €22,000 in Kildare for a three-bed home. And this is despite the couple availing of the State's Help-to-Buy scheme, which can see new buyers getting up to €30,000 to put towards the purchase of a home. Estate agents who are members of the SCSI said this shows the affordability gap for ordinary couples seeking to buy their first home. SCSI president Gerard O'Toole said the scenarios his organisation worked out show affordability has become more challenging across various house types and locations. 'While a new three-bedroom semi-detached home is affordable in Cork, and buyers with additional savings beyond the 10pc loan-to-income limit should be able to overcome the gap in Meath and Galway, new three-bedroom semi-detached homes in Wicklow and Kildare remain totally out of reach for people on these salaries,' he said. These findings highlight the persistent structural barrier which exists to homeownership 'In addition, there are thousands of people on lower salaries who will not be able to buy and will require support.' Mr O'Toole said calculations for two- and three-bed terraced houses in the same five locations show affordability being met in nearly all locations. However, the couple would require some additional savings in Kildare and Wicklow in order to buy a three-bed terraced home. 'These findings highlight the persistent structural barrier which exists to homeownership, even for dual-income households in stable public sector roles,' Mr O'Toole said. 'It also underscores broader concerns around housing sustainability, increasing commuter burdens and the potential impact on quality of life.' According to the latest SCSI 'Residential Mid-Year Market Monitor' report, over half of agents believe the key factor influencing house prices over the next 12 months will continue be the lack of supply of new housing. A majority of estate agents believe current residential property prices are expensive or very expensive. When asked where they believe we are in the market cycle, 60pc of respondents believe prices are increasing but will level off soon. Some 18pc believe they have peaked and should start to decline. The SCSI report found 70pc of agents are reporting low stock levels of new and second-hand homes. 'Over the past five years, more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market,' the report said.
Irish Daily Mirror
3 days ago
- Business
- Irish Daily Mirror
National property prices to increase by an average of 5% over the next 12 months
Estate agents expect national property prices to increase by an average of 5% over the next 12 months - down slightly from the 6% increase forecast in January. Over half of the agents - who are members of the Society of Chartered Surveyors Ireland (SCSI) - believe the key factor influencing house prices over the next 12 months will continue to be the supply - or more accurately the lack of supply - of new housing. A total of 88% of agents believe current residential property prices are expensive or very expensive – up 5% since January – while just 12% believe they are currently fair value, according to the latest SCSI Residential Mid-Year Market Monitor. The report also found that affordability challenges have intensified for first time buyers around the country and a couple on a combined income of €107K who want to buy an averagely priced new three-bed semi-detached house and have the 10% deposit will afford to buy in only one of five locations. In the two most expensive counties, Wicklow and Kildare, the couple will face shortfalls of €65,000 and €22,000 respectively for that house type. The average purchase price of a new three-bed semi in Meath is €482k; in Kildare €500k and €548k in Wicklow while in Cork it's €459k and €485k in Galway. When asked where they believe we are in the market cycle, 60% of respondents believe prices are increasing but will level off soon – while 18% believe they have peaked and should start to decline. Gerard O'Toole, President of the SCSI, said the report indicated mounting concern over the supply situation and by extension with a recent slowdown in home construction. 'Fifty-one percent of agents in our survey cite lack of supply as the main factor driving price inflation, up from 46% a year ago. In 2023, the figure was 35%, so we can really see the impact the lack of supply is having on house prices. 'At the same time, 70% of agents are reporting low stock levels of new and second-hand homes, again underscoring the persistent challenge of limited supply in the market.' 'Over the past five years more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market.' 'With the ESRI forecasting that 37,000 new homes will be built this year, well short of the Government's target of 41,000, the urgent need to address infrastructural shortcomings and for the Housing Activation Office to become fully operational as soon as possible cannot be overstated.' 'The other main factors, which our members believe are influencing price movements include the state of the economy (20%), while a further 16% said the continued availability of government support schemes such as Help to Buy and First Home Scheme are influencing house prices.' 'Looking at where we are in the market cycle, 78% of agents believe prices will level off soon or have already peaked. In the medium to long term, the only way to ensure prices stabilise is to ramp up supply' Mr O'Toole said. Sign up to the Irish Mirror's Courts and Crime newsletter here and get breaking crime updates and news from the courts direct to your inbox.
Irish Examiner
14-06-2025
- Business
- Irish Examiner
Ireland's households have €160bn in savings. Could it be used to solve the housing crisis?
As Ireland grapples with a worsening housing crisis marked by soaring rents, a shortage of supply, and rising homelessness, construction industry bodies are pointing to an untapped resource that they say can help with long-term planning. New figures released by the Central Statistics Office (CSO) this week found that before adjusting for seasonality or inflation, Irish households saved €8.2bn in the first three months of 2025. For reference, the State allocated just over €5bn to housing in 2024. The saving rate of Irish households, reported to be 14% at the beginning of this year, has remained consistent for the last two years, driven by wage increases and falls in unemployment, which have led to a growth in household income. In total, Irish households' bank deposits amount to almost €160bn, with the low interest offered on savings accounts ensuring very little return for depositors. Irish banks have been notably slow in raising the rate of interest on deposits, with eight consecutive rate cuts by the European Central Bank putting further downward pressure on interest rates. 'The establishment of a state-backed housing investment vehicle could play a key role in addressing the housing crisis,' the Society of Chartered Surveyors Ireland has said, pointing to what it says is a mutually beneficial initiative for both households and the Government. Similar to schemes operating in countries like France, the society says such a scheme would enable the Government, which is constrained by the windfall nature of its corporate tax revenue, to put long-term, multi-annual housing plans in place, while at the same time facilitating investment in much-needed infrastructure projects. Gerard O'Toole President of the SCSI. 'At the same time, access to finance remains a major barrier, especially for small and medium-sized developers.' The State needs to explore alternative and diversified funding streams, Mr O'Toole said, adding that the Government's current level of investment in housing is not sustainable in the long term. 'A savings fund of this nature would underpin long-term planning by providing the multi-annual funding commitments housing projects require,' he said. 'It could also support longer-term budgets for several state housing schemes, including help-to-buy and vacant property grants, which are often subject to annual funding reviews and decisions.' But housing is just one avenue that could benefit from unlocking household savings. The European Commission is also seeking to channel savings into productive investments, adopting a new strategy earlier this year which aims to increase EU citizens' participation in capital markets. On an EU basis, about 70% of household savings, worth around €10tn, are held as bank deposits. The commission is currently under pressure to boost the bloc's competitiveness following the eye-opening findings of the Draghi report, which warned of the growing innovation gap between the 27-member bloc and the US. The commission needs to unlock new funding avenues to support homegrown businesses, particularly in the tech sphere, where Europe has largely fallen behind. 'The EU must unlock its potential to achieve its goals linked to competitiveness, security, and digital and green transitions,' the commission said. 'By developing an integrated banking system and capital markets, the savings and investments union can bridge the gap between savings and investment needs.' As the EU sees it, households should have the opportunity to hold more of their savings in higher-yielding capital-market instruments. It also notes the indirect impact this will have on a consolidating banking sector, which, due to its rising concentration, has seen less competitive rates offered to consumers. With more high-yield, government-backed investment options on the market, banks will be forced to increase the rates offered to deposit holders. This week's data from the CSO suggests a significant opportunity for the State to explore mechanisms to mobilise household savings. Construction bodies, the Irish Government and the European Commission have all emphasised the need to channel household savings into productive investment, but realising this potential will come down to effective coordination between the relevant institutions.
