One in five believe they will never afford a home

An Irish House and Home Survey by insurer 123.ie has revealed that one in five people might never afford their own home.

Affordability is a huge issue for those not currently on the property ladder, with almost one in five (19%) reporting that they don’t think they’ll ever be in a position to buy their own home, even though 91% of adults currently renting or living with parents want to buy.

The majority would like to purchase a house (77%), just 5% would like an apartment and 17% would be happy with either.  However, for most, buying will not be a realistic prospect until at least 2020 and one in three respondents say that it could take up to five years before they are in a position to buy. The majority of those planning to buy in 2020 are aged 25-35 years (64%) and 31% are in the 18-24 years age bracket.

The 123.ie Irish House and Home Survey was carried out by one of Ireland’s leading home insurers amongst landlords, homeowners, renters and those living with parents. It covered a range of issues including rental properties, mortgages, renovations and water charges.

Head of Marketing, Padraig O’Neill said “affordability is a massive issue for younger people.” He noted ”almost one in five of those renting or living at home who feel that they’ll never be able to buy say it’s because property prices are too high. But the issue is more complex than that and there are multiple factors at play that make ownership for some seem like a remote prospect.”

According to the research, these factors, or barriers include the ability to service the mortgage (34%) whilst 18% cannot save enough money for a deposit. A total of 20% think that the new salary to mortgage ratio is too restrictive.

Notwithstanding these results, the property market should experience plenty of interest in the short-term, as 24% of respondents currently renting or living at home are planning to buy in the next two years.  Of these, 74% are aged 25-34 and 12% are in the 18-24 years age bracket. Over half (58%) of those planning to buy are currently living in Dublin or neighbouring counties.

The short-term outlook for those who would like to buy is gloomy, with 71% of the opinion that property prices will continue to rise. The survey found 61% of homeowners intend to stay put. It also found 73% of people want water charges scrapped and 14% of tenants reported missing a rent payment in the past year due to a lack of funds.