House prices in Ireland are expected to climb by an average of 4.5% over the next year, according to a recent report by the Society of Chartered Surveyors Ireland (SCSI). This marks a significant increase from the 1% rise forecasted earlier in January.
The report highlights that three-quarters of estate agents are grappling with low stock levels, with nearly half (46%) pointing to the limited supply of new housing as the primary driver of rising prices.
Gerard O’Toole, Vice President of the SCSI, emphasized the need for increased housing supply to meet growing demand. He noted that the number of agents identifying supply shortages as the main issue has jumped from 35% last year to 46% now.
According to The Journal, other factors influencing house prices include the state of the economy, interest rates, and the availability of credit. Agents also expressed concerns over delays in house sales, often caused by planning issues, non-compliance with regulations, and problems accessing property deeds.
The SCSI report also included an affordability test for first-time buyers. It found that a couple on average incomes could only afford to buy a new home in Meath, out of five areas assessed. For smaller two-bed homes, the outlook was slightly better, with four out of five areas being affordable without government assistance.
Additionally, the report highlighted the challenges of renting, with average rents for a three-bed home ranging from €2,139 in Meath to €2,475 in Wicklow. The high costs underline the difficulties families face in securing affordable housing in Ireland.
