First-time buyers getting older as house prices and rents keep rising

COUNTY CORK HOUSE PRICES NOW HITTING €215,118 ON AVERAGE WHILE CORK RENTS ARE AT €1,010 PER MONTH

MOVE out of home before you’re 24 and have your first house bought before you’re 29.

This is the ideal scenario when it comes to living situations in Ireland, according to the latest consumer survey from leading protection specialist Royal London. But it would seem that these ages are merely aspirational, given that, in 2017, first-time buyers were 34 years on average, up from around 31 back in 2003, according to the Central Bank’s Household Credit Market Report 2018[1].

Royal London commissioned an iReach survey of 1,000 people throughout the country to ascertain the views of the general public on what’s the right age to move out of home and to take your first step on the property ladder.

“As the age of first-time buyers in Ireland continues to rise, it would appear that moving out and buying your first property at the most ‘desirable’ age is beyond reach for most people,” said Tony Burke of Royal London in Cork.

“As society evolves, family situations and living arrangements change. What would have been once considered the traditional sequence of events, get married, buy a house and then have children, in that order, is becoming less common. A period of renting at some point is usually the case for many individuals nowadays.

“With current house prices reaching an average of €273,894 in Cork City and €215,118 in Cork County, coupled with Central Bank lending restrictions, it means that on average, people have to wait well into their thirties before they can afford their first home.”

Mr. Burke pointed out that average monthly rents in Cork are currently coming in at around €1,010 per month. “The vast majority of people believe that you should be in your early twenties when moving out of your family home. This is a little surprising given that most young people would start college straight after their Leaving Cert, at around 17 or 18 years of age, which could potentially necessitate a move to college digs. Would this view suggest that people are more inclined to think young people should stay at home during college? Perhaps it is due to accommodation availability and affordability.

“It is substantially more expensive to move out of home to attend college, and many students may select a college course that is within a commuting distance from their family home. Or maybe it’s just down to needing some extra family support with the transition from school to the new pressures of college life.”

In 2016, the Higher Education Authority reported that 44% of full-time undergraduates in Ireland were living in their family home or with relatives and commuting to college.

Meanwhile, the latest figures from Census 2016 revealed that almost 460,000 adults are currently cohabiting with their parents.

“While one might expect people to believe it’s best to fly the nest as soon as possible, the survey reveals a significant shift in attitudes towards the acceptance of moving out of home at a much later age. 30% of those surveyed thought that being between the ages of 25 - 35 is ideal,” Mr. Burke continued.

“It’s likely there are several reasons for this; a primary one may be people trying to avoid paying high rents while allowing them to save up a deposit for a mortgage.

“Certainly, it’s now more acceptable and common than ever to still be living at home at this age, or indeed having to return to the family home after a period of renting.”

The Royal London survey revealed some disparity between the views of older and younger generations when it comes to moving out:

• 53% of those aged 18 – 34 saying they believe that you should be between the ages of 20 – 24 when moving out of the family home.

• This figure rose by 11% to 64% when respondents aged 55 or over were asked the same question.