Pat Davitt, Chief Executive of IPAV, the Institute of Professional Auctioneers & Valuers which represents 1,100 auctioneering firms throughout Ireland.
While Tuesday’s CSO residential property price index shows inflation nationally increasing to 11.9pc in May it is important that the Government is not forced into panic measures such as ending the Help-to-Buy scheme, IPAV, the Institute of Professional Auctioneers & Valuers, has said.
Pat Davitt, IPAV’s Chief Executive, pointed out that prices are still 29.5pc (Dublin) and 34.7pc (Rest of Ireland) lower than peak.
“The CSO figures also show that a massive 91.5pc of the dwelling purchases filed with the Revenue Commissioners in May were for existing rather than new buildings and of course the Help-to-Buy scheme, as currently constituted, applies only to first-time-buyers of new homes.”
Mr Davitt said what is needed is a whole of Government approach to deal with “the absolutely chronic issue of the lack of supply.”
“These latest figures show an increase in purchases of 6.5pc compared to May 2016. That is merely an increase from an extremely low level of 2,881 to 3,067 in a market which some estimate needs 50,000 new homes per year.”
He said more dramatic interventions on the supply side are urgently needed.