'Significant Government intervention' needed to tackle the housing crisis – Sherry Fitzgerald
Estate agent Sherry Fitzgerald has called for "significant Government intervention" to bring about stability to the housing market.
Ahead of next week’s budget the estate agent described the residential property market in Ireland as being in "crisis"
"Supply is critically low, price inflation is elevated and investors continue to flood out of the market.
The forthcoming budget represents the best opportunity for the Government to address these issues," Marian Finnegan, chief economist at Sherry FitzGerald, said.
The call for action from the estate agency came as it revealed that the average value of residential property in Ireland rose by 2.3pc during the three months to 30 September.
This brings year to date growth to 6.8pc, compared to a year to date increase of 4pc recorded in the corresponding period in 2016.
In Dublin, average values rose by 2.5pc in the three months to 30 September, bringing growth in the year to date to 7.3pc.
During the first nine months of 2016 house prices in Dublin increased by less than 3pc.
When Dublin is excluded from the national figure, the quarterly growth figure was 2pc.
The year to date national figure (excluding Dublin) came in at 6.2pc, compared to 5.6pc in the same period in 2016.
"The pace of price inflation reflects the impact of the supply side crisis, which the market continues to endure. As such, price inflation will remain elevated until supply increases significantly," Ms Finnegan said.
Regional centres outside Dublin continued to experience robust price growth during the year to date, most notably Galway with price growth of 6.4pc in the nine months to September.
Cork recorded growth of 5.8pc, followed by Limerick with growth of 5.5pc, according to the Sherry Fitzgerald data.
The estate agent also warned that the stock of properties available for sale remained critically low. The latest bi-annual analysis of second-hand properties advertised on the market reveals that the stock of available properties had fallen nationally to 25,100 units in July 2017, an annual decrease of 9pc.
The current available stock represents just 1.3pc of the total private housing stock in Ireland.