The property market in Dublin and other sought-after areas has slowed significantly because first-time buyers (FTBs) can’t get mortgages to buy properties there under the new Central Bank rules.
Typical working couples are getting approved for €100,000 less in mortgage borrowings under those rules. This is forcing FTBs to either rent or to buy further afield. It is also believed the recently discussed first-time buyer grant, if re-introduced, will be of little, if any, help to house hunters. The State grant, which would likely be between €3,000 and €5,000, was discussed at a Labour Party parliamentary meeting earlier this month.
A couple earning €75,000 between them, which is around the average wage each, could have borrowed between €340,000 and €360,000 before the rules kicked in on February 9 – as long as they could prove they were saving or paying rent equivalent to the mortgage repayments on that mortgage for at least six months. That couple could today borrow €262,000 – that’s a massive drop.”
FTBs on average salaries who are looking to buy property in or near Dublin have been hammered by the new rules.
The average first-time buyer will find it harder to get a deposit together so they can buy in Dublin, even Lucan or Celbridge may be beyond their reach. So they have been driven to look to commuter belt areas like Enfield, Kilcock, Portlaoise and Drogheda.