House Completions Rise Amid Persistent Market Pressures
Ireland’s housing crisis is showing early signs of a shift as house completions increase and mortgage lending rises, though analysts warn the market remains years away from resolving its underlying supply deficit, rte.ie reported. The number of new homes built between July and September reached a 10.4% increase compared to the same period last year, pushing the total of finished dwellings to almost 27,000 for the year to date.
Mortgage Lending and Property Listings Expand
Bank figures cited by rte.ie show that first-time buyer mortgages grew by 9% year-on-year, with 22,600 home loans taken by first-time buyers so far. At the same time, mortgages for movers increased by 7% year-on-year, signaling added liquidity across the market. On the supply side for older homes, MyHome listings reached 14,600 properties in September, marking a 12.5% increase from the previous year.
Property Price Growth Slows as ECB Rates Climb
Property price growth has decelerated from an annual rate of 10% two years ago to 5%, with economists forecasting a further slowdown to 3% or 4%. This cooling coincides with European Central Bank interest rate hikes from 2% to 2.5% in recent months, alongside Central Bank rules that have kept affordability constrained for many buyers.
Government Policy Changes Draw Construction Sector Support
The Government implemented policy changes aimed at encouraging investors by altering building standards, reducing VAT on new apartments, and relaxing rent controls. While these measures received backing from the construction industry, opposition parties criticized the rules over tenant impacts, as homeless numbers reached a record 17,885 people in emergency accommodation, according to rte.ie.
Future Housing Output Thresholds and Expert Recommendations
Goodbody Stockbrokers chief economist Dermot O’Leary, who was a member of the State’s Housing Commission, stated that multiple policy levers remain necessary to lift annual output beyond the 50,000 unit threshold. Mr. O’Leary called for continued fiscal supports for social housing and home ownership, faster residential rezoning, coordinated utility provisions for water and electricity, and ongoing planning system reforms.
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