Saturday 3 December 2016

Making it easier for first-time buyers will hike up prices

Published 24/11/2016 | 02:30

The concern is that with more people in the mortgage market, it will result in more competition for the scarce few houses being built or coming onto the market. Photo by Matt Cardy/Getty Images
The concern is that with more people in the mortgage market, it will result in more competition for the scarce few houses being built or coming onto the market. Photo by Matt Cardy/Getty Images

Changes to Central Bank lending rules will make it easier for first-time buyers (FTBs) to secure a mortgage, but there's a real fear it will further increase house prices.

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While still well below the levels needed to meet demand, supply has been slowly ramping up with just over 12,500 new homes built last year, and more than 10,500 in the first nine months of 2016.

The concern is that with more people in the mortgage market, it will result in more competition for the scarce few houses being built or coming onto the market. That will inevitably lead to rising prices, which have already increased by more than 7pc year on year.

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