It has been revealed that house prices are set to rise by 20 percent within the next three years. Rent prices across the country have also soared.
Reports have revealed that the cost of buying a house will increase by 2020. The Economic and Social Research Institute stated that these figures prove that there is no sign of another property bubble occurring.
They added that if the government doesn’t resolve the homeless crisis, house prices are set to rise even more in the future. They have asked the government to prioritise the homeless crisis. If this issue is not addressed the country will see major increases in the housing market.
The study conducted by the ERSI compared the house prices in Ireland to those abroad. They analysed price-to-income ratios and price-to-rent ratios.
Their study found that “the Irish market does not yet display any signs of overheating”.
Even though the prices are set to grow in the future, the ERSI shared that Ireland’s prices are considerably affordable compared to properties in other European cities.
They do not believe that house prices will decrease within the next three years unless the number of available properties increases dramatically.
Rent prices are also on the rise as the average rent in Ireland has hit €1200. However, the growing problem is the lack of availability.
Daft.ie shared that the average price in Dublin is €1,774 per month, which is 12 percent higher than the average cost of rent in Dublin last year.
Prices in Limerick rose by 10 percent, Galway saw an inflation of 9.8 percent and rent prices in Cork rose by five percent.
Focus Ireland has urged the government to address the homeless crisis as today’s news shows that their methods to amend it aren’t working.
According to BreakingNews.ie, Mike Allen of Focus Ireland stated that Ireland needs stricter laws, especially when it comes to renting and landlords. He felt that landlords could easily raise the price of a property or evict tenants with little notice due to loopholes in the system.
"The minister has to change that legislation, he has to get rid of that loophole and he has to make sure that families and other people in rented accommodation can rely on the tenancy treatment they have and not see it turn up at a moment’s notice,” said Mr. Allen.
Experts and charities both agree that the government needs to increase the number of properties available in Ireland to cope with the demand.
