Central Bank moves? Only across the Liffey
A REPORT on the impact of the Central Bank rules has just been released by some influential bodies from across the property industry, including the two real estate representative bodies, SCSI and IPAV, plus the CIF, IBEC, brokers’ bodies and a number of respected property firms.
It found that 20pc of the surveyed 1,100 people, comprising both first time buyers and movers, were unaware of the Central Bank rules — surprising to say the least.
Of those surveyed, 63pc intend buying in the next five years. Of the total, 45pc own their home, 36pc are renting and 12pc live with family; 82pc were based in Dublin and the balance outside.
When asked what the main factors were preventing them from buying, 35pc cited deposit accumulation. But 50pc of FTBs confirmed that they had already saved the deposit. A further 24pc of respondents confirmed they had received a gift from a family member.
This goes to prove the increasingly vital role that ‘the bank of mum and dad’ must play. It also highlights the pent-up demand that currently exists in Dublin, especially for starter homes in the €300,000 bracket.
The fact remains that those wanting to buy are often hamstrung as either they don’t qualify for a mortgage based on earnings capacity or simply cannot secure the loan from a bank.
This challenge is not going to go away any time soon. It looks likely that the only movement we can expect from the Central Bank will be to their new premises in the Docklands, once they have sold their buildings on Dame Street for the expected €85m.