Thousands of 30-somethings living with parents due to property prices

TENS of thousands of people in their 30s still live with their parents because they cannot afford to buy a house and the number is growing.

Many young couples are also forced into substandard accommodation, unable to get on the property ladder, according to Fine Gael’s Environment spokesman Fergus O’Dowd.

“Throughout the country, young couples are paying high rents in far from luxurious accommodation, unable to save for a deposit and with little hope of ever owning a house,” he said, responding to the latest ESRI survey which shows that Irish house price growth for 2005 looks set to exceed that of 2004.

Mr O’Dowd added that property prices continue to accelerate out of the reach of thousands of would be first-time buyers.

“The figures just published for property price increases in 2005 are bad news for young people trying to get on the property ladder, but good news for the Government who continue to rake in €100,000 in taxes on every €300,000 house sold.

“What is worse is the Minister for Finance did not increase, as I urged him to, the first time buyers exemption level for stamp duty, which means that more and more new buyers will come into the stamp duty net.”

The average price paid for a house nationally now stands at €274,507 versus €254,215 at the end of 2004. Irish house prices have more than tripled in the past 10 years.

According to the Permanent TSB/ESRI House Price Index, the overall value of house prices rose by 8% between January and November compared to an increase of 8.4% over the same period in 2004.

However, unlike this time last year, the rate of increase is accelerating. The pace of growth between July and November stood at 5.4%, more than double the 2.6% in the first six months of the year.

“This housing crisis has led to a situation where, according to the 2002 Census, 42,500 people over the age of 30 are still living with their parents,” said Mr O’Dowd.

“This is the first generation of young people where home ownership is becoming progressively more outside their capability. The so-called Celtic Tiger has passed these people by.

“Since this Government was first elected, house prices have more than tripled. Young couples are faced with mortgages of €300,000 and upwards yet, despite promise after promise, report after report, prices climb ever higher and this Government has done nothing. The stark reality is that this Government is the main beneficiary of escalating house prices - the higher the prices go the greater return to its coffers.”

Mr O’Dowd claimed his party’s plan would:

* Abolish all stamp duty for first-time buyers on properties valued at less than €400,000.

* Provide for an SSIA-type saving scheme that gives first-time buyers one for every three euro saved for a deposit.

* Frontload mortgage interest relief to the first seven years of payments, giving help when most needed.