Tuesday 15 October 2019

Ministers bank on cooling market to avoid housing backlash at election time

 

Property prices are continuing to rise in Ireland but the rate of rise is easing. Photo: Bloomberg
Property prices are continuing to rise in Ireland but the rate of rise is easing. Photo: Bloomberg
Charlie Weston

Charlie Weston

The Government is banking on house price rises having peaked by the time of the next election.

It is understood senior ministers feel some of the heat could be coming out of the market already.

They are attributing the slowdown in property price inflation to increasing housing supply.

They also feel a combination of a surge in planning applications, an easing of land prices in parts of Dublin, and the activities of the State's new Land Development Agency will calm the raging property market.

Unless the Government is seen to be getting to grips with the housing crisis, there are expectations that 'Generation Rent' will make Government TDs suffer badly at the ballots.

People are being forced to pay rents that are now €300 a month higher than during the property market peak in 2008, with many forced to give up their homes as landlords push up rents to levels that have become unaffordable.

A United Nations special rapporteur on housing has already raised the stakes by condemning what she said was the "financialisation of housing" in this country.

The creation of the new Land Development Agency is set to affect house price particularly in cities, one minister indicated.

This is because it will improve the ability of the State to arrange its own land banks and maximise housing output.

Property prices are continuing to rise in Ireland but the rate of rise is easing, according to the Central Statistics Office's Residential Property Price Index.

In the 12 months to February, prices increased by 4.3pc nationally. In February 2018, the market had seen a 12.5pc annual rise.

Prices in parts of South Dublin and some areas in North Dublin have begun to ease back.

Irish Independent

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