HOUSE price inflation has soared to its highest in ten years.
The House Price Report from property website Daft.ie found that the cost of an average home in Ireland rose by three per cent in the second quarter of the year.
The typical price of a house around the country was found to be €357,851, 12.3 per cent higher than at this time last year and 40 per cent higher than at the beginning of the Covid-19 pandemic in 2020.
In Dublin, house price inflation is in line with the rest of the country at 12.3 per cent, while Leinster as a whole saw an increase of 14.3 per cent.
In both Limerick city and Galway city, costs rose at roughly the rate of the national average, sitting at 12.8 and 12.5 per cent respectively.
The rate of inflation in Waterford city is 15.2 per cent, while the same figures are lower in Cork, where price increases are 8.6 per cent.
The average cost of a home in Dublin was €467,913, while in Galway city it was €426,348 and in Cork it was €369,938.
The current market inflation is the highest seen in ten years — since mortgage market rules were introduced.
And while the Government has boosted its homebuilding target this year, Housing Minister James Browne said last week that the aim of 41,000 is “not realistic”.
Trinity College economist and author of the report Ronan Lyons said it is time for the Government to step in and create a plan for producing more homes.
He explained: “The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland’s chronic housing shortage.
“The substantial increases over the past year in almost all parts of the country are linked to the lack of second-hand supply.
SECOND-HAND SUPPLY ISSUE
“This in turn is related to the increase in interest rates earlier in the decade.
“As interest rates come down and mortgage-holders come off their fixed rate terms, the picture for second-hand supply will improve.
“There are already some tentative signs in Dublin of an increase in second-hand supply. Nonetheless, the second-hand market is only part of the solution.”
He added: “Policymakers have to address their failure to recognise and provide the framework for enough new homes each year.”
House price inflation has soared to its highest in ten years[/caption]
