Most Irish home buyers expect property prices to keep rising

A new survey of potential buyers, and those planning to move to a new home, has found that nearly half said the cost-of-living crisis meant they had to postpone a purchase.

Almost half of respondents are not waiting for an interest rate cut before buying, according to research among 2,223 registered users of property website MyHome.ie.

Lenders have been cutting mortgage rates lately, with the European Central Bank expected to cut its key rate next month.

The survey reveals that just 13pc believe the next year would be a good time to buy.

Today's News in 90 Seconds - May 8th

The cost-of-living crisis has led 44pc of buyers to postpone a property purchase. Lack of supply is an ongoing issue, with 78pc saying they have had to look beyond their top location choice.

The survey also sought the views of homebuyers on whether a change of government would be good for the property market. Just over a third of the respondents believe it would be good, 21pc said it would not make a difference, while 43pc were unsure.

Demand is so strong among buyers that almost half of those surveyed said they would not wait for an interest-rate cut before going ahead with a purchase.

Fifty-three per cent are expecting the price of homes to increase in the next year. More than half of the respondents are looking to secure a mortgage term of over five years. Almost three out of four of those who responded will look to secure a fixed-term mortgage.

Joanne Geary, managing director of MyHome.ie, said: “The Taoiseach pledged to build 250,000 homes by 2030, but after a decade of insufficient construction activity, it is perhaps understandable that people are wary of the Government’s promise to deliver the amount of new homes we need.”

She said it was striking that despite the negative outlook about the market in general, strong demand was clearly in evidence.

“On the one hand, very few people believe that the next year will be a good time to buy,” she said.

“On the other hand, nearly two-thirds of respondents are financed and ready to go.”

Ms Geary believes that only sustained home-building will lead to a meaningful improvement in property market sentiment.

“If the Government can facilitate a decent period of uninterrupted construction activity, this would make a huge difference,” she said.