Bad news for first-time home buy­ers


Wicklow People (West Edition) - - NEWS - By EIMEAR DODD

A new re­port has ranked Wick­low as the least af­ford­able county in the coun­try for first-time buy­ers try­ing to buy prop­erty.

The garden county came at the bot­tom of the league based on the abil­ity of first­time buy­ers on an av­er­age income to pay a mort­gage and the length of time needed to save for a de­posit.

For first-time buy­ers in Wick­low, an av­er­age of 15 years plus was found to be re­quired to save a ten per cent de­posit.

How­ever, even if first-time buy­ers saved the de­posit, they still faced ad­di­tional chal­lenges to achiev­ing home own­er­ship in Wick­low. The re­port found that many may struggle to meet loan re­pay­ments, based on a mort­gage of 3.5 times house­hold income. First-time buy­ers in Wick­low were found to have a mort­gage to income ra­tio of 4.9.

EY-DKM Eco­nomic Ad­vi­sory an­a­lysed Ire­land’s hous­ing mar­ket and their find­ings high­lighted that the lack of af­ford­able houses for first time buy­ers has moved be­yond cities such as Dublin and Cork and be­come a na­tion­wide is­sue.

The re­search did not look at other fac­tors which first-time buy­ers may con­sider when choos­ing where to live. These in­clude qual­ity of life, com­mut­ing, life­style or work op­por­tu­ni­ties.

The re­port as­sessed af­ford­abil­ity us­ing two fac­tors; whether first-time buy­ers can af­ford the mort­gage re­pay­ments on a prop­erty based on a mort­gage of 3.5 times their house­hold income, and sec­ond, their abil­ity to ac­cu­mu­late a suf­fi­cient de­posit of 10 per cent to pur­chase the prop­erty. The re­search re­vealed that a sig­nif­i­cant bar­rier to home own­er­ship for first-time buy­ers’ is their abil­ity to save the re­quired 10% de­posit due to a range of fac­tors, which, in some coun­ties, can take over 15 years to ac­cu­mu­late on an av­er­age income.

Meath and Kildare were also found to the most un­af­ford­able when saving for a de­posit.

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