100% increase in house supply needed to meet demand this year

Leitrim Observer Reporter

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Leitrim Observer Reporter

Home owners  in Leitrim insure their contents for an average  of €37,034.49

More homes are urgently needed.

Responding to today’s CSO house price figures indicating continuing price increases, at 12.5pc in Dublin in the year to April and 13.6pc in the Rest of Ireland, Brokers Ireland said while tomorrow’s CSO new analysis on house building numbers is awaited all the indicators are that supply is still so far behind demand that it would need to increase by 100pc, per year, not including pent-up demand, and unless this situation changes rapidly house prices are likely to continue to rise, albeit perhaps not at the same unsustainable pace.

Rachel McGovern, Director of Financial Services (pictured below) at the organisation which represents almost 1,300 firms, said there is massive pent up demand for homes built up over several years at this stage.

“While those with deep pockets are winning in this high demand low availability market, those on average incomes are seriously disadvantaged.

“Their financial futures and any form of healthy financial planning are largely in abeyance while they try to cope with short term needs with many forced into high and growing rental prices for what is temporary accommodation.”

Ms McGovern said in a continuing market of rising house price inflation affordability is increasingly becoming an issue.

“It is noteworthy in today’s figures that in South Dublin the level of inflation dropped back from 9.6pc in the year to March to 6.9pc in the year to April.

“This may be a combination of affordability and the fact that South Dublin has seen more home building than many other areas. 

“As if the need for homes is not already staggering the latter in particular would underline the need for a much more urgent response from decision-makers on housing supply, to prevent prices escalating beyond reason.”