Wary buyers keep housing market down

A LACK of confidence in the housing market from potential buyers is preventing it from returning to normal according to a report from Dublin-based estate agents, Hooke & MacDonald which found it will be the middle of next year before normality is returned to the market.

It said this lack of confidence is the main outstanding issue preventing the rebound as interest rates look likely to fall during the year, stamp duty has been reformed and affordability has improved.

It said that although confidence by prospective home buyers is low, demand for accommodation is strong because of the buoyancy in the rental market with rents rising on average by 12% a year.