Saturday 15 December 2018

Generation resigned to never being able to buy own home

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Luke Byrne

Luke Byrne

It has long been the Irish dream to own a home, but now almost one in six people is sceptical of the likelihood they'll ever achieve it.

A survey of 5,000 people has found 9.22pc agreed that owning a home was something they were unlikely to achieve.

A further 6.73pc of respondents "somewhat agreed" they may struggle to ever purchase a home.

The combination of increasing rents and house prices has led to an atmosphere of pessimism among would-be buyers.

Conor Faughnan, of the AA, which carried out the house-buying survey, said a noteworthy element was how even among those under 35, there was a general consensus that home ownership is an important milestone.

Some 53.12pc of respondents completely agreed with that sentiment while 24.98pc partially agreed.

"In previous decades those approaching their mid-30s would have been on the verge of entering the property market.

"But a lack of supply and rising costs is forcing this cohort to question if they will ever own a home or at the very least delay purchasing for several more years," he said.

The study also found a significant generational gap in attitudes towards home ownership, with those under 35 significantly more likely to feel like home ownership was beyond them.

Of those respondents under 35, 17.97pc fully agreed they were unlikely to ever be in a position to purchase property, with a further 15.56pc partially agreeing with this claim.

The survey follows recent data from the Central Statistics Office which showed house prices have been increasing by 12.4pc a year.

In December, research from estate agents Savills said 18.9pc of the population was renting their home, the highest proportion since records began.

Meanwhile, the price of renting has soared, especially in the capital. In May, property website Daft.ie reported the average rent in Dublin city centre was €1,923 a month.

In Cork the figure €1,210, while Galway rents were averaging €1,131.

The AA survey comes after research from Aviva, published last month, found similar concerns about "forever renters".

Its survey found one in four of those who want to own their home believe they will never be able to. And 40pc do not expect to be able to buy until 2028.

The survey was carried out by Red C among a nationally representative sample of 1,292 people.

Some nine out of 10 respondents said they would prefer to own their own property rather than renting.

Not being able to afford a deposit was cited as the main reason home ownership is unattainable for 68pc of the renters who would like to own a home.

Irish Independent

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