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House prices to rise by up to 6pc as more people work from home

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Sixty-two percent of the chartered agents and auctioneers say price increases will be due to lack of supply of new and second-hand homes.

Sixty-two percent of the chartered agents and auctioneers say price increases will be due to lack of supply of new and second-hand homes.

Sixty-two percent of the chartered agents and auctioneers say price increases will be due to lack of supply of new and second-hand homes.

Property prices are predicted to rise by as much as 6pc this year, as an increase in people working from home is driving higher interest in houses across Ireland.

The Society of Chartered Surveyors Ireland (SCSI) releases its annual review for 2021 today, and two out of three agents forecast an increase in property prices throughout the country in the next 12 months.

Dublin, which already has the highest prices, is predicted to see increases of 3pc. Meanwhile, Connacht and Ulster – which have the lowest prices – are set to see a rise of 6pc.

The Leinster region is similarly set to see prices go up by 4pc, while in Munster it’s forecast to increase by 5pc.

The society’s vice president, TJ Cronin, went into further detail about what many chartered agents expect to happen.

“Sixty-two percent of the chartered agents and auctioneers who are predicting prices will rise, say it is because of the lack of supply of new and second-hand homes, while 33pc say economic performance and the impact of Covid-19 on output will be the key drivers,” he said.

He went on to say that Covid-19 will continue to dictate activity levels in 2021 as it did last year, and discussed the impact that working from home has had on the market.

“We can see that the transition to working from home has led to a re-ordering of priorities and is driving interest in larger properties in regional locations with good broadband and lots of amenities, as well as holiday homes in secondary locations,” he said.

“The trend away from urban areas is also reflected in the survey’s price projections, with agents in Dublin forecasting the lowest growth and agents in Connacht/Ulster the highest.”

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SCSI vice president TJ Cronin said Covid-19 will affect prices

SCSI vice president TJ Cronin said Covid-19 will affect prices

SCSI vice president TJ Cronin said Covid-19 will affect prices

Covid-19 has also affected the rental sector, with figures from the Residential Tenancies Board showing that last year had the lowest national annual growth rate for rent since late 2012.

However, many agents believe this has to do with a temporary increase in supply thanks to the pandemic, as several thousand short-terms lettings which were previously aimed at tourists suddenly had to come on the market. As such, they say it’s likely to be a one-off occurrence.

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One of the main findings of the report is that housing supply remains a dominant issue, with it possibly taking over a decade for supply to be met.

By 2031, it’s predicted the sector will need to be building in excess of 60,000 units per year, which is over three times the current output. Mr Cronin said this lack of supply may drive sales.

“In a situation where you have very limited supply – 83pc of agents report having low levels of stock available in Q4 – the fear of missing out on a property will very often trump the fear of paying over the odds,” he said.

Of course, Mr Cronin noted that the pandemic has affected some buyers more than others.

“Many of the people who have been worse affected from an economic perspective by the pandemic are very often excluded from the property market on affordability grounds. That is an indictment of the failed housing policies of the past,” he said.


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