Monday 11 December 2017

More than 50pc pay for homes with cash

Picture posed. Photo: Getty Images
Picture posed. Photo: Getty Images

Charlie Weston Personal Finance Editor

CASH buyers of houses and apartments now account for more than half of all purchasers and are crowding out traditional family buyers.

People who are able to buy a property without a mortgage now account for 57pc of all residential sales, new research by economist John McCartney of estate agency Savills has found.

He said cash buyers were helping to drive prices up and were squeezing families who need mortgage finance out of the market.

Prices rose by 8pc in Dublin last year with intense competition for available family homes driving up valuations, figures for July from the Central Statistics Office (CSO) show.

Mr McCartney, a former CSO statistician, looked at data from the Irish Banking Federation, the Property Price Register and Savills' own residential branch network

"Some 57pc of all residential purchases in the first half of this year were made by cash-only buyers, up from fewer than 5pc in 2010," he said.

"When one considers that many of the remaining mortgaged purchasers are buying at relatively low loan-to-value ratios, cash is very clearly a dominant factor in the market."

Irish Independent

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