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Tuesday 12 December 2017

'A whole generation being denied chance to own home'

Cairn Homes chief executive Michael Stanley says we need a sustainable mortgage environment
Cairn Homes chief executive Michael Stanley says we need a sustainable mortgage environment
John Mulligan

John Mulligan

Mortgage interest rates are still "way too high" and there's a whole generation that has been prevented from buying a home, according to the chief executive of Cairn Homes, Michael Stanley.

While Mr Stanley welcomed moves by some lenders to cut some mortgage rates, Irish home owners have typically been paying the highest rates in Europe.

"We need a sustainable mortgage environment," Mr Stanley told the Irish Independent, adding that moves by banks to cut rates had been a step in the right direction.

"Nobody wants to ever get back to 100pc mortgages and lending that's not sustainable."

He questioned the Central Bank rules on mortgage lending introduced last year.

"The question is around the timing and severity of some of the measures, and whether there's room to look at some way of flexing some of those rules, acknowledging that we have a whole generation who have been, up to now, denied the opportunity to own a home," he said, noting that escalating rents also pose a serious problem.

Cairn Homes floated on the stockmarket in June last year. In a trading update yesterday, Cairn Homes said that it was on track to complete 100 house sales this year across its active sites, and of meeting its medium-term objective of delivering 1,200 housing units a year by 2019.

The company said that strong pre-launch interest in an exclusive development called Marianella in south Dublin had prompted it to sell some of the intended 234 units at the site off the plans.

That resulted in 40 sales worth a total of €27.2m.

Irish Independent

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