| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Property Last Updated: Mar 3, 2015 - 2:08 PM


Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
By Michael Hennigan, Finfacts founder and editor
Feb 28, 2015 - 7:03 AM

Email this article
 Printer friendly page

The number of Irish housing mortgages paid in 2014 was at the same level as in 1976 while almost half of house sales were paid in cash.

Last week the Banking & Payments Federation announced that a total of 22,119 mortgages to a value of €3.9bn were drawn down in 2014 while Department of the Environment, Community & Local Government data show that in 1976 the total number of mortgages paid was 22,051.

Just under half of all homes purchased in Ireland last year – 20,365 in total – were bought for cash. Property website MyHome.ie said this means that on average of 55 houses a day were being bought for cash throughout 2014.

Angela Keegan, managing director of MyHome.ie said this level of cash transactions – 48% - was not sustainable in the long term.

“The Property Price Register shows that 42,484 houses were sold last year. According to the Banking and Payments Federation Ireland 22,119 mortgages to the value of €3.9bn were drawn down during the year. This means the remainder, 20,365 were bought for cash. While it was thought the number of cash buyers was declining, this shows there is still a lot of cash out there and a lot of it is finding its way into property,” Keegan said.

This will be a concern for first time buyers who often find themselves competing and losing out to cash buyers. The new lending rules introduced by the Central Bank will also be a factor here," Keegan added. "While they will probably be viewed in time as a prudent move, for people currently looking to buy a home they will be viewed as another hurdle to overcome as they restrict the amount first time buyers can borrow. While we would like to see the overall level of transactions rise to close to 80,000 a year we would also like to see the proportion of cash buyers fall.”

The Property Price Register for January shows the level of transactions is up significantly compared to the same month last year. Nationally 2,904 house sales have been recorded to date, up 51% on the 1,924 recorded in Jan 2014.

In Dublin there were 1,117 sales "up a massive 85% on last year" while in Cork there were 292 sales up 39%. Keegan said it was likely the increase in sales was in response to the new lending rules.

“It looks as if the increase in the level of sales is directly attributable to a rush by buyers to complete their house purchase before the new lending rules came into force. There may well also be an element of vendor panic as sellers look to wrap up sales even if it means taking a lower price; the price falls we saw in the CSO figures earlier this week would support that view. However we will have a better idea of the medium to long term impact of the rules by the end of March,” Keegan concluded.

Related Articles


© Copyright 2015 by Finfacts.ie

Top of Page

Property
Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement