Housing minister admits 'archaic' aspects of homebuying need 'increased transparency'

Report by the Economic and Social Research Institute said the most commonly used bidding systems encourage people to overbid, leading to inflated prices.

The housing minister has admitted aspects of the homebuying process are "archaic" and added there needed to be increased transparency in that process.

James Browne was reacting to a new study which found overbidding, a widespread misunderstanding of rights, and increasing delays are all characteristics of homebuying in Ireland.

The report by the Economic and Social Research Institute (ESRI) said the most commonly used bidding systems encourage people to overbid, leading to inflated prices.

It found bids were pushed higher in "open auctions", such as through estate agents and online platforms, than in a sealed bid auction.

Those in open auctions are more likely both to exceed their original budget and to bid higher than their view of what the property was worth.

While participants said they favoured the transparency of online systems due to the perception of fairness, their behaviour in auctions suggests open systems may actually push up prices.

ESRI senior research officer, Deirdre Robertson, said the report showed buyers were "navigating a system they may not fully understand and increasingly experiencing stress".

Asked about the report, Mr Browne told reporters his officials were working with the Property Services Regulatory Authority and the Department of Justice to "see how we can increase transparency".

The minister said closed-bidding systems "seem to work quite well" in other countries, adding a review on best international practice was under way.

On speed of conveyancing and probate, Mr Browne said the Department of Justice was looking at recommendations to speed up those processes to get people "into homes as quickly as possible".

Sale agreed

A survey of participants also revealed knowledge of rights and responsibilities was low, with widespread misconceptions about legal obligations and protections.

While more than two-thirds know it is illegal for a seller to accept multiple deposits for the same property, only 20% know agents can legally continue to market a property after it goes "sale agreed".

Additionally, most people do not know a buyer can pull out of a sale without penalty before contracts are signed.

Asked if "sale agreed" bids should be locked in so auctioneers cannot continue to market a property, Mr Browne said this was "something that does need to be looked at".

"I think every aspect of the sale — whether it's the conveyancing side of it, whether it's the speeding up probate, whether it's increasing transparency — and how we do the whole sale, because it is quite archaic, it hasn't changed in a long time. So all of those various aspects are being worked on."

The study was funded by the Competition and Consumer Protection Commission (CCPC), which has previously recommended reforms around simplifying and increasing transparency in the conveyancing process, including legislating for pre-sale requirements and the full disclosure of information on property platforms.

The CCPC's 2025 report in the residential property market also found low trust and transparency in the homebuying process.

Simon Barry, director of research, advocacy and international at CCPC said the study reconfirmed the need for reform and greater financial literacy.