Housing crisis solution needed - Mortgage volumes

The amount of mortgage money drawn down will drop by almost a third in the last three months of this year, compared with the same period in 2014, according to the Association of Expert Mortgage Advisors, whose members account for half of all mortgage business nationwide.
Housing crisis solution needed - Mortgage volumes

If that turns out to be the case, it can only make our current housing crisis even worse.

There has already been huge increases in private rents, much of it as a result of prospective first-time buyers being unable to save the sizeable deposits now necessary under tighter lending restrictions.

Mortgage volumes in the region of €10bn are considered to be the norm for a country of Ireland’s population. While that rose to an unsustainable €40bn at the height of the property boom, it has now fallen to less than €4bn.

A combination of lack of supply of new housing coming on the market and restrictions imposed by the Central Bank is considered to be largely responsible for this.

There is no question but that Ireland’s lending rules were far too lax a decade ago and fuelled the property boom, but now they may be too restrictive.

Only a well-constructed solution to the housing crisis will work — and that is a job for the Government.

Doing nothing is not an option.

More in this section


Select your favourite newsletters and get the best of Irish Examiner delivered to your inbox

Execution Time: 0.211 s