Wednesday 24 May 2017

These two properties were the cheapest sold in Ireland in 2016 - just over €5,000 each

Lyons Estate was the most expensive property sold in Ireland last year – at €12m
Lyons Estate was the most expensive property sold in Ireland last year – at €12m
Mark Keenan

Mark Keenan

Two properties that sold for just over €5,000 each were the cheapest sold in Ireland last year, new figures have identified.

An analysis of the Property Price Register has found that a house at Newtown, Clogher, Claremorris, Co Mayo, sold for €5,260 and Clonroche in Enniscorthy, Co Wexford, sold for €5,500 in 2016.

The most expensive house sold in Ireland last year was the Lyons Estate in Kildare, which sold for over €12m.

But Myhome.ie has warned that the biggest housing supply famine in a generation has just gotten worse with news that the levels of property transactions taking place across the country has fallen by 3.5pc through 2016 to just 47,175.

This corresponded to a rise in the value of transactions overall - up 7.4pc to €11.5bn - indicating the inflationary effect of a market in which supply is extraordinarily tight.

Supply of property fell hardest in Galway (down 13pc), Kilkenny (12pc), Mayo (9pc) and Limerick (9pc) with only six counties recording a rise in transactions. The highest recorded were Sligo (up 12pc), Waterford (11pc) and Laois (5.7pc).

The capital, which accounted for around one-third (32pc) of property deals nationwide, saw a 2.4pc decline in transactions while Cork, which saw 11pc of deals nationwide, saw its number of property deals fall by 1.3pc.

Read more: Bad news for first-time buyers: Cost of a home to jump 7pc this year, 5pc next year

Angela Keegan of Myhome.ie, which produced the figures based on the data in the Residential Property Price Register, said the general decline in the number of transactions was an ongoing concern.

"We have approximately two million properties in Ireland and in a normal market around 4pc or 80,000 of these would be changing hands each year," she said.

"As this analysis shows we are a long way short of that. At the moment there are 18,900 residential properties for sale on MyHome.ie, this is 12pc down on this time last year when there were 21,410 properties for sale," Ms Keegan said.

Reasons behind the reduced number of properties for sale include sluggish rates of new home construction; the continued prevalence of negative equity; fear of losing favourable tracker mortgage terms; an absence of bridging finance; and a fear of being unable to source another home in the ultra competitive market with so little for sale.

Meanwhile, Fianna Fáil finance spokesperson Michael McGrath has called on Finance Minister Michael Noonan and the Revenue Commissioners to clarify the situation facing landlords who were wrongly denied a tax deduction on their Non-Principal Private Residence (NPPR) charge over the 2009 to 2013 period.

Read more: Paul Melia: Any idea that boosts supply should be given serious consideration

Mr Noonan confirmed in a Dáil reply to him that the Revenue Commissioners have appealed last month's High Court ruling that the NPPR charge - which has since been abolished - should have been allowed by Revenue as a deductible expense for tax purposes.

Mr McGrath said: "Given that over €440m has been collected by the State from the NPPR charge and the fact that many landlords have paid a marginal tax rate of over 50pc on rental income, the tax refund due to owners of properties that were rented out is likely to run into tens of millions of euro."

Irish Independent

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