An extension of the Help-to-Buy scheme is crucial and it should be expanded to include all buyers of a primary residence not just first-time-buyers. This is the contention of experts at MyMortgages.ie, who say while it’s widely accepted that first-time-buyers need the security of the Government financial support scheme being extended past its December 2019 deadline, second-time-buyers have had less attention, with falling numbers in mortgage approvals showing that they too are struggling.
The CSO Quarter 1 2019 new dwellings completion report confirms a strong upward trend across all housing construction activity data sets.
“While it is important to continue our efforts to ensure that this trend is maintained and even further improved, it is encouraging to see today’s results,” says Housing Minister Eoghan Murphy.
“In order to properly address homelessness” he continues, “affordability and the challenges in housing, we need to fix supply. These numbers show that this is happening.
The help-to-buy scheme should be extended “sooner rather than later” to help first-time buyers being priced out, a mortgage expert has said.
Joey Sheahan of MyMortgages.ie was speaking as a report from EY and DKM showed nearly half of all counties in the Republic are now unaffordable for first time buyers on an average income.
There will be a “dramatic fall off” in first-time buyers entering the market next year if the Help-to-Buy scheme is not extended.
That was the stark warning from the head of credit at MyMortgages.ie, Joe Sheahan, who was responding to the latest Central Statistics Office (CSO) figures on house prices.
While house prices continue to ease with the annual rate of increase in May now the lowest in six years, prices increased by 2.8% nationally in the year to May, compared to a 3% increase in the year to April.
However the market appears to be cooling down overall
Irish consumers pay an average of more than €150 each month on their mortgages compared with their European peers because of high interest rates, an expert has said.
Latest official figures show the headline rate of inflation in the capital city Dublin at 0.6%