Sunday 22 September 2019

'Nigh on impossible to save for a deposit' - most renters fear they will never afford to own their own home

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Charlie Weston

Charlie Weston

THE majority of renters are pessimistic about being able to afford a home.

A survey of renters countrywide found that seven out of 10 of them believe they will never be able to afford to buy a property to live in.

And large numbers worry about being able to afford the rent, such have been the increases in the cost of accommodation lately, according to the survey commissioned by Taxback.com.

Some nine out of 10 of those who rent said they worry to varying degrees about being about to meet their monthly repayments.

Affordability has become a major issue as rents are now so high people are struggling to pay what is demanded, and the monthly cost is such a drain that young couples are unable to save for a deposit.

The latest rent index from the State-supported Residential Tenancies Board found that rents rose by 8.3pc nationally in the first quarter of this year when compared with a year ago.

This meant the average cost nationwide was €1,169, some €90 more a month than last year.

In Dublin, the average rent is now €1,662 per month, an increase of 8.5pc, or €70 a month, on the previous year.

Now a survey of 2,000 renters, who are clients of Taxback.com, asked if they believe they will ever be able to purchase a home.

Some 71pc said no, with 13pc expecting to be able to afford a property in five years or less. Some 16pc expect to be able to afford a home in the next five to 10 years.

Asked if they worry about being able to afford your monthly rent payments, a total of 64pc said they do worry.

Another 24pc said they worry sometimes, with only 12pc saying being able to meet the monthly Mark Corcoran of Taxback.com said: “While attitudes and perceptions towards long-term rental in Ireland are changing, for many Irish people the absolute ambition at a certain stage in life is still to buy a house and own your own property.”

But he added that the survey reveals that for a large percentage of people, that ambition feels very much out of reach.

“Renters are really struggling in Ireland, and most are caught in the vicious cycle of high rents - making it nigh on impossible to save for a deposit and therefore making a move from the costly rental market unattainable.”

He said the issue now affects people from all income groups and employment classes, and not just the more traditional demographic groups of students, the unemployed or low wage workers.

The research about people feeling they will never afford a home comes as a separate study found the cost of new apartments is now beyond the reach of most low-middle income Irish workers, with a startling 30pc of the final sale price going directly to the State in taxes and fees.

A working couple who are first-time buyers would need to earn between €100,000 and €125,000 to afford a new two-bed apartment in an Irish city.

The affordability gap, and housing shortage, are threatening economic and employment growth, according to a report by economic consultants EY-DKM.

Online Editors

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