Even though Ireland is not included in the ING International study on Homes and Mortgages published earlier this week, there are some stark lessons contained within its pages which need to be heeded by the government and why the number one Government priority should be the supply of new homes to meet the pent-up, critical demand, and taper house price inflation, Brokers Ireland have said.
Diarmuid Kelly, chief executive at the organisation which represents 1,300 brokers throughout Ireland, said the finding that seven in ten Europeans in the 18 to 34 age cohort who currently rent would like to own their own home is particularly noteworthy, as is the finding that 65pc of Europeans see buying a home as a symbol of success.
“Home ownership is generally the biggest financial outlay most people will make in their lives, and provided it can be achieved at an affordable price, it will contribute hugely to personal wealth over time,” he said.
“The reality is what has been prioritised in Ireland is the effects of the housing shortage rather than the cause – a lack of supply of new homes.”
He said regulation restricting lending and regulation in relation to rents have been prioritised, all of which have had unintended consequences, such as excluding young people from home buying when property prices were at their lowest.
“Ensuring that new homes are built has to be the Government’s number one priority. If it doesn’t happen more quickly than heretofore the consequences for individuals, families and society as alluded to in today’s study could be stark,” he concluded.