THE Government has been blasted for failing to tackle Ireland’s deepening housing crisis.
A new study reveals soaraway gaff prices nationwide are rising by seven per cent annually.
The latest MyHome property report laid bare how asking prices outside Dublin have shot up by 7.9 per cent, with rates in the capital up 5.1 per cent.
The typical residential transaction is now being settled for 7.5 per cent above the asking price.
The Labour Party today called on Government to double the delivery of affordable and cost rental housing in response to the crisis.
Labour’s housing spokesperson Conor Sheehan stormed: “House prices are still going in one direction – up.
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“The latest figures show that the average asking price has surged seven per cent in the last year. What’s worse, homes are now typically selling for 7.5 per cent above the original asking price. This is completely unsustainable.
“How many expert reports does it take for this Government to admit what people already know? Affordability is completely out of reach for huge numbers of people.
“In my own county of Limerick, prices have gone up by a staggering 9.62 per cent. It’s no wonder so many people are giving up on the hope of ever owning a home.”
Labour insisted the housing policies of coalition partners Fianna Fail and Fine Gael were failing to deliver enough pads.
Limerick TD Sheehan said: “This is Economics 101. We have a supply crisis – pure and simple – which continues to hand all the power to those with deep pockets, while locking out working people.
“Housing for All was meant to solve this. But five years since its launch, the increased supply it promised still hasn’t materialised.
‘FAILING ON ALL FRONTS’
“Meanwhile, Fianna Fail and Fine Gael remain at the beck and call of developers.
“The reality is that the Government is failing on all fronts.”
Conall MacCoille, Chief Economist at Bank of Ireland and author of the MyHome report said uncertainty following President Trump’s announcement of tariffs hasn’t been sufficient to dent Ireland’s housing market.
He added: “The average mortgage approval in May was up 6.7 per cent on the year, while the typical residential transaction is being settled 7.5 per cent above the original asking price.
“Meanwhile, one in six properties is sold by 20 per cent or more over asking price, indicating that competition for homes remains fierce.
“Another factor at play is loosening of the Central Bank mortgage lending rules. The average first-time-buyer borrowed 3.4 times’ their income in 2024, up from a 3.2x multiple in 2022. This change has pushed up house prices by €15,000 to €20,000.”
OUTCOME WILL FALL SHORT
The economist said that some improvement in home completions was likely in 2025 but warned that it still would not be adequate enough.
He said: “Whatever the outcome for housing completions in 2025, it will fall well short of the 50-60,000 units required.
“Attention should focus on difficult problems surrounding build costs and the viability of apartment development in Ireland over the medium-term.”