Following the introduction of the Irish government’s, new ‘Help-to-Buy’ scheme, together with more relaxed mortgage lending rules, house prices in Éire look set to rise by at least 8 per cent during 2017 with double-digit growth considered to be a real possibility .
The prediction is made by the Irish stockbroking firm, Davy, and contained in a report from the Irish property website, myhome.ie. It is also anticipated by a number of sectors throughout Ireland that the ‘Help-to-Buy’ scheme, together with the lack of availability, will push up price growth.
The ‘Help-to-Buy’ scheme, which opened to applicants on 1st January this year, provides first-time buyers who purchase, or self-build, their new home with 5 per cent back on the price paid for their new home.
Across Ireland, the Central Statistics Office reported a 7.1 per cent increase in property prices at the end of Quarter 3 2016. Estate agents Sherry Fitzgerald estimate that for the entire year of 2016, property prices had increased by 5.2 per cent compared to 4 per cent for 2015.
Regionally, the highest house price growth was Cork at 10.1 per cent, followed by Dublin, where property prices increased by 3.7 per cent during 2016 to 7.4 per cent for the year, and Galway and Limerick at 6.9 per cent.
Although the last 12 months’ price growth has been strong, the average value of a homes across the country is around 40 per cent lower than it was in 2006 – the peak for Irish property prices.
However, property price growth in Ireland is expected to accelerate during 2017 due to demand, as figures published by Daft.ie indicate the number of homes coming on to the property market has fallen to an all-time low since 2007.