Cost of living crisis impacting people's ability to rent or buy a home 

The survey suggests that the rise in the cost of living is significantly impacting the homebuying, home renovation and rental markets.

Some 63% of people believe that the rising cost of living has affected their ability to rent a home, while almost half (49%) of homebuyers believe it has affected their ability to purchase.

The findings are part of a new survey by MyHome.ie which also found that 45% of respondents said inflation and the cost of living crunch has impacted their ability to renovate or do building work to their homes.

Price concerns have also driven 63% of prospective homebuyers and 75% of renters to look beyond their top location choice for somewhere to live.

The survey suggests that the rise in the cost of living is significantly impacting the homebuying, home renovation and rental markets.

An overwhelming majority of respondents - 85% - believe that Government could do more to help the property sector.

The survey of 2,861 people found strong demand in the property sector, with two-thirds (67%) of respondents having their finances in place to buy a property in the next year. Over half (54%) said they were confident about their ability to buy in that timeframe.

The impact of property price inflation and the rising cost of living may have lessened people’s expectations on price rises in the next year, the survey found. Just three in ten expect property prices to go up over the next 12 months, compared with six in ten (59%) who believed the same in April of this year.

Meanwhile, sentiment is particularly negative among renters.

Joanne Geary, Managing Director of MyHome.ie, said: “The rise in the cost of living is having a significantly negative impact on consumer sentiment, yet we know that demand is still very robust despite these financial pressures.

“On MyHome.ie in July we saw a surge in brochure views up by over 40% on the previous year – we can see from our metrics that buyer demand is remaining remarkably strong. 

"Even though interest rates have recently risen, they are still relatively low and it remains to be seen how much of these increases will be passed on by the banks. 

Given employment levels are at an all-time high, the demand dynamic in the market remains very buoyant in spite of cost of living increases.

She said that overwhelming negative sentiment about the rental market was having a knock-on effect across the entire property market. 

“Renters are under huge pressure and, anecdotally, we know that many of those who are in a position to leave the rental market and buy are pressing ahead perhaps sooner than they otherwise would have, given the lack of value, uncertainty and choice in the rental market at present. 

"In many cases, it simply could be cheaper to buy than rent if the stock was available to buy.”