75% aim to buy a house within five years

Three out of four people want to buy a house in the next five years, with value for money and access to loans still the main stumbling blocks.

While the housing crash has not dampened desire to get on the property ladder, a survey has found most prospective buyers are putting off their purchase until prices fall further — with six out of 10 house-hunters wanting to have their own property within the next two years.

Two thirds of those surveyed expect they will be able to find their ideal property for less than €250,000, although there are still a few big spenders out there: 4.4% say they expect to pay over €500,000.

However, 64% do not believe the properties in their area represent good value and almost half (48.4%) believe prices will fall by up to another 35% over the next five years.

That remains the main reason for putting off buying a house in the immediate future, followed by the need to save for a deposit and an inability to get a mortgage.

Lack of mortgage credit is seen as the main factor likely to drive house prices down, followed by the continued recession and persistent unemployment.

Greater availability of mortgages, an economic recovery and an improvement in the jobs situation are considered the three factors most likely to stabilise and increase prices.

The findings, from a survey of more than 2,000 people conducted in December and January by property website Daft.ie, is intended as the first of a series tracking consumer attitudes towards the property market.

Two thirds of those questioned were in rental accommodation, living with their parents or in social housing. A small number of those were happy to continue renting, so the 76.6% who said they wanted to buy included some owner-occupiers.

People from every county took part in the survey, with 66% being married or cohabiting and a similar number (67.8%) being in the 25-39 age group.

The majority (68%) believe prices in their area have fallen by between 35% and 55% since the property market peak in 2007 and about the same number (64%) believe they will fall between 5% and 20% before the end of this year.

Respondents are aiming high, with 61.5% most interested in buying a detached house. Just 11% are interested in buying an apartment, despite apartment prices falling further than other properties.

According to the last Daft.ie house price survey in January, the asking price for a three-bed house in Dublin city centre is about €255,000, 62% below peak levels in 2007.

Prices throughout Munster are 40% below peak levels, with the asking price for a three-bed house highest in Cork City at €182,000 and lowest in Waterford City at €121,000.

Commenting on the survey, Kieran Harte, marketing director for Daft.ie, said: “Our survey gives us a deep insight into our consumers’ perceptions of the state of the property market both nationally and locally, and it also gives us an indication of people’s intention to participate within the property market. We believe these ongoing surveys will act as an important indicator for measuring consumer sentiment.”