Friday 19 January 2018

S&P ratings agency predicts Irish house price growth to end of 2017

Permanent TSB’s Niall O’Grady addressing the National Residential Property Conference. Photo: Iain White Photography
Permanent TSB’s Niall O’Grady addressing the National Residential Property Conference. Photo: Iain White Photography
Mark Keenan

Mark Keenan

A report just published by the international ratings agency Standard and Poors has predicted strong house price growth in the medium term in Ireland until at least the end of next year, citing a "demand- supply mismatch" and strong economic performance overall.

S&P, whose advice is relied upon by investment firms all over the globe, predicts Irish property price growth of 5pc nationally this year and a further 4pc increase in values through 2017.

The report states: "Supply shortages have emerged in many areas in Ireland owing to the low level of house construction activity in recent years, leading to upward pressure on prices as labour market conditions improve.

"Given the current depressed levels of housing supply, expected strong economic performance and positive demographic trends, we think that it will be some time before the mismatch between demand and supply is rectified."

Meantime, the rapid pace of technology driven change in the property sector was highlighted yesterday at the 3rd annual Irish Independent National Residential Property Conference held at the RDS.

Hundreds of professionals from all over Ireland who attended heard how within a few years mortgages will be shopped for, applied for, and eventually fully processed online.

Permanent TSB's director of consumer products, Niall O'Grady, revealed how consumers of mortgages were becoming more empowered by online developments in recent years, at the expense of mortgage brokers and estimated that lenders would have to fight it out for a smaller mortgage market in which buyers came to the market older (at 35 today compared to 29 ten years ago) and where a growing number would rent rather than purchase.

Pinergy CEO Enda Gunnell revealed how new developments in battery technology would have a huge impact for Irish home owners through energy saving. Within three years solar and wind power generated in homes will be stored for ongoing use.

However, Keith Lowe, CEO of the DNG group maintained that emerging claims that property sales would one day be conducted exclusively online are misguided because: "people will always want to turn up themselves to smell the damp and jump on the floors."

Irish Independent

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