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Remote working 'driving interest in larger homes' as prices forecast to increase 6pc

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Supply continues to be dominant issue in the housing market

Supply continues to be dominant issue in the housing market

Supply continues to be dominant issue in the housing market

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.

Connacht and Ulster - which have the lowest prices - are set to see a rise of 6pc.

Leinster is similarly set to see prices go up, by 4pc, while in Munster they are forecast to rise by 5pc.

The society's vice president, TJ Cronin said: "Sixty-two per cent 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 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."

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 lets which were previously aimed at tourists suddenly had to come on the market.

Dominant

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

By 2031, it is predicted the sector will need to be building in excess of 60,000 units per year, which is over three times current output.

Mr Cronin said this lack of supply may drive sales. He noted that the pandemic has affected some buyers more than others.

"People who have been worst affected from an economic perspective 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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