Impact of a New Government on the Property Market

The Property Industry Ireland (PII, a lobby group of IBEC) have issued a industry report looking at the impact a new government (when we get one!) will have on the property market.  The report is called ‘The First One Hundred Days in Housing’ and predicts that the number of new homes delivered in 2017/2018 will be determined by policy decisions made within the first three months of the new Dail.

If this is true, then the entire country will be watching with interest as low supply is the single greatest challenge in the marketplace at the moment. This is particularly true in Wicklow although Wexford is starting to see some new developments completing and coming on stream. Here at Kinsella Estates, we are delighted to be launching a new scheme shortly, you can register your interest with us by email Michael@KinsellaEstates.ie and we will release details shortly.

The lack of housing supply means that people are stuck. Owner-occupiers are stuck in so-called ‘starter homes’ that are badly needed for the private rental market; first-time buyers have mortgage approvals ready-to-go but cannot find suitable new homes and large home-owners are unable to trade down when the time comes as there are no local homes available. This has a knock-on effect for social housing locally and the rental market in general. The obvious solution is to make more new homes available and that is what is need now from government. Given uncertainty surrounding who will be our new Taoiseach, it is difficult to guess how the Cabinet will be made up. If priority is given to social housing, then delivery is likely to happen where the housing lists are longest, for example, in Dublin.  However, if priority is given to first-time buyers, then delivery will be focused on delivering affording houses along the commuter belt, for example Wicklow.

Since 2009, the construction industry has delivered significantly less housing units per year than were needed. Seven years on, the shortage has reached crisis point. We can see this every day with the level of enquiries we get from  buyers who are frustrated with the lack of choice out there. For people who are considering selling their home or investment properties over the next few years, it makes sense to do so before new supply starts becoming available over the next 12-24 months. If this is something that you have been thinking about, you can speak with me directly on Tel: +353 53 94 21718 and I can talk you through local supply and demand in the immediate area.

The PII has made several recommendations to the impending new government, calling for the  appointment of a cabinet level minister with oversight for housing, infrastructure and planning policy. At the moment this position is at the level of junior minister. A cabinet level minister would report directly to the Taoiseach. They have also called for emergency planning and development legislation (for three years) to fast-track new private and public housing developments through the planning process. It also recommends a review of the tax-base of property, taking in the local property tax (LPT), stamp duty, VAT and development levies.

I would love to hear your thoughts on these recommendations – do you have any to add to these, whether as a future buyer, seller, investor or developer in the Wicklow/Wexford area?

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at kinsellaestates.ie.

Alternatively, you can email me directly on michael@kinsellaestates.ie or telephone: +353 53 94 21718