Shortage of sites driving rapid rise in house prices

A shortage of suitable sites and a complex planning system is slowing down the delivery of new houses that is contributing to the current rapid rise in property prices in some areas.

Among the key findings of the AIB Residential Property Outlook report, carried out in partnership with Property Industry Ireland and Sherry Fitzgerald New Homes were the availability of suitable sites for development, planning challenges and access to development financing particularly equity financing.

While the report found that financing was a problem facing developers, the survey of first-time buyers revealed that half of those surveyed had more than €350,000 to spend.