Back to site

©2024. All rights reserved.
Crafted by 4Property.

House Prices in the South East Continue to Rally

August 11, 2017 #

The latest round of Irish residential property price changes has just issued from the Central Statistics Office, or CSO, and the trend from the last few months continues.  While average prices nationally are up 11.6% year on year, prices outside of Dublin are growing at a faster rate than they are around the capital.  The breakdown is as follows: property prices throughout the rest of Ireland (i.e. not including Dublin) were 11.8% higher in the 12 months to June, with the increase for Dublin 11.1%.  This puts annual inflation at 11.6%, which is the fastest pace in two years.

When we look further into those average figures, it appears that the South East region (including Wicklow and Wexford) showed the greatest house price growth with an increase of 16.7% – almost double that of the Mid West and significantly above Dublin rises.

In terms of recovery, prices in the South East region have increased in excess of 50%  since the recovery began in 2012/2013; however, they remain approximately 35% below peak/2007 prices.  RTE and Irish Times commentary on current Irish house price inflation attributes the pick-up to “the robust economic recovery”, increased mortgage lending, relaxation of the Central Bank deposit rules for home buyers and the Help-to-Buy (HTB) scheme – which, incidentally is under review and in threat of being axed.

If all this talk about rising house prices locally has made you think about selling, you might be interested in the following article:  How to Know When it’s the Right Time to Sell

 

If you are considering selling in the South Wicklow and North Wexford areas, call into one of our offices (located in Carnew and Gorey) and chat to any of our expert team or you can contact us online at kinsellaestates.ie.  We are happy to facilitate overseas buyers and sellers via Skype or similar, outside of regular office hours.

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

How to know when it’s the right time to sell?

August 3, 2017 #

Selling your home, holiday home, investment property or perhaps an inherited house or land can be daunting.  With so many questions and so much  – often conflicting – information out there (online or chats over the garden fence), it can be difficult to get straight answers.  When you are thinking of selling, straight answers are exactly what you need.  Property valuations that are too vague, or too general, or that carry lots of exceptions and exclusion clauses are just not helpful.  What you need is local insight that tells you not only the likely open market value of the property today, but more importantly, you need insights into local supply and  demand.  This is the difference between listing your property and actually selling your property – we’re guessing that once you have made the decision to sell, you want to get things moving!

 

Unlike when dealing with an investment or inherited property, the biggest factor in the decision to sell your home should not be market conditions.  Certainly, it is important to be aware of current market performance and undoubtedly, there are times when the market trends favour the buyer moreso than the seller, and vice versa, but none of this is more important than your personal, family and financial position.

 

As your estate agents, our first step  generally is to arrange to do a walk-though of your property.  This helps us to get specific in terms of the market valuation, but it does so much more than that. It is at this point where we use our experience and expertise to help you, as a seller, prepare your home or investment property for the market and a few weeks of viewings. Long gone are the days when sellers can list a property ‘as is’ just to test the market.  The rise in property technology, the increased pace of life and competition in the marketplace all mean that sellers usually only have one opportunity to impress potential buyers in person.  In fact, getting them inside the property requires great photos/videos/3D tours and great copy (which is why you need a great estate agent!).  For this reason, it is recommended that any little fixes around the house are done prior to getting the photographs taken for the brochure and online listing, and certainly before opening up the property for viewings.

 

Sellers must not underestimate the importance of preparing the property and this is equally true for the photography and video (or virtual reality tours) as it is for viewings.  A bright, airy and freshly painted entrance sets a positive tone for the rest of the home.  Stylish furnishings that are consistent with the age/type of property are great but a deep cleaning and decluttering session will go a long way towards impressing house-hunters – as will sparkling windows and neutral tones throughout.

 

For many people, buying and selling their home coincides with other big life events, like changing careers, getting married, starting/growing a family or perhaps downsizing as our children grow up and leave home.  This undoubtedly adds to the pressure, confusion and perhaps feelings of overwhelm.  As this is such a big decision, we understand the importance of getting it right.  Taking the time to discuss your overall plans will help your estate agent to guide you in the right direction.   It is never recommended to make quick decisions in reaction to sudden life changes, but sometimes it has to happen like that.  Having a good relationship with your agent will make the transition smoother.

 

If you are considering selling in the South Wicklow and North Wexford areas, call into one of our offices located in Carnew and Gorey and chat to any of our team or contact us online.  We are happy to facilitate overseas buyers and sellers via Skype or similar outside of regular office hours.

 

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

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718       

Local Wicklow and Wexford Property News, July 2017

July 7, 2017 #

Market update

You might have seen the latest Daft.ie quarterly report all over the news and across social media in the last few days; the headlines were along the lines of ‘Property prices could rise for the next 10 years’.  House prices are up an average of 6% over the past six months.  Once again, it’s good news for sellers but not so much for buyers. According to Daft’s second report of the year, house prices country-wide are up 46% from their lowest point in 2013.

In fact,  a report on the average amount that first-time buyers across Ireland must pay as a contract deposit revealed that South Dublin is the most expensive area (unsurprising), with the average buyer requiring an average €56,300 in cash.  Roscommon is the least expensive county for first-time buyers with the average first-time buyer requiring just €13,000.  The required figures for Wicklow and Wexford are €31,484 and €19,753 respectively.

New landlord/tenant regulations

But for investors, it was a week of changes with new regulations coming into effect on July 1st.  This new legislation  means that landlords will need to deliver a higher standard of accommodation, particularly  in the area  of safety.  To meet the new fire safety standards, every rented house or apartment must be equipped with a working fire alarm system and a fire blanket.  This also applies to the communal areas of multi-unit buildings, which must have working emergency lighting.

In relation to air quality, all houses and apartments need to have a functioning (regularly maintained) carbon monoxide alarm and proper ventilation systems in the kitchen and bathroom.

In the kitchen, every home must have a ring hob with oven and grill, a microwave, an extractor fan, a fridge/freezer, a sink with drinking water, adequate storage and access to laundry facilities.

One big change is that pest control  and dealing with any vermin (it happens!) is now the responsibility of the landlord.

One to consider

With landlords needing to supply a higher quality of property to tenants and with first-time buyers who don’t qualify for the help-to-buy scheme finding opportunity in modern, second-hand houses,   we have a great three-bed house on offer, just a five-minute walk from Gorey’s Main Street.  This is a great, family-home type property and garden in excellent condition.  With an asking price of €165,000, this property will suit a family or a landlord for letting to a family at an approximate rent of €900-€950 per month.

21 Charlotte Grove, Gorey, County Wexford:

http://www.daft.ie/wexford/houses-for-sale/gorey/21-charlotte-grove-gorey-wexford-1444131/

 

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

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718          

Property Help for Returning Emigrants

June 23, 2017 #

The Irish Times ran a series of articles recently about returning emigrants trying to buy property in Ireland.  It was targeting those recently returned and those who are planning to return over the next few years.

We know from local experience here in counties Wicklow and Wexford that the most recent wave or generation of emigrants (circa. 2008 to 2013) are already starting to return to Irish shores, having amassed experience and savings during their time abroad.  For the overwhelming majority of people, returning to Ireland is inevitable.  Speaking with people is this position, they usually want to return home around the time they are ready to start a family, or if they already have children, they tend to plan their return around important milestones like starting school or secondary school.

Certainly, they are returning to a healthier economy and jobs market, but there can be no doubt that the everyday property market is much more difficult for buyers and renters now than when they left.

While some return to the market as cash buyers (including first-time buyers), most need to get some portion of finance.  If you think it is difficult to deal with the appointments, application forms, receipts and scattered paperwork of applying for a mortgage, just imagine the difficulties trying to do this from outside of Ireland!  While banking has moved online, property is still relatively old-school and initial sit-down meetings with a financial advisor or in-branch mortgage manager is still the start of the mortgage application process.  That is not to say arranging a mortgage, or approval in principle (AIP) from abroad is impossible, however, the reality is that it is more complicated.

Mortgage applicants in this position are not treated like ordinary, local homebuyers, nor are they treated like residential investors (which is only appropriate); essentially they are the modern hybrid buyer.  They are unlikely to secure 90% mortgages, on the other hand, most do not need 90% LTV.

Remote buyers can expect to access approximately 50% but rarely in excess of 70% LTV. One unfortunate aspect here is that property prices are increasing at a faster rate than would-be buyers can grow their savings.

Also, it must be pointed out that overseas residents are not eligible for the help-to-buy scheme for first-time buyers purchasing a newly built home (although news reports this week suggest that this scheme might be axed shortly as it drove up property prices rather than stimulated new supply – on this not, if you are based in the South East and eligible for the scheme please do contact us here at Kinsella Estates to get a list of our new homes, just 45 minutes from South Dublin).

One area of confusion is the new EU directive that restricts foreign lending.  This has made it more difficult for mortgage applicants outside the euro zone or not earning income in euro, notable exceptions are made for expats in the UK, Australia and Canada.  Ulster Bank, AIB and Bank of Ireland are the main banks lending to returning expats, with Permanent TSB opting for euro zone customers only.

Overseas buyers who are able to access funding should expect to pay interest rates as high as 4.95%, which is considerably higher than the 2.9% rate enjoyed by most first-time buyers already living here.

For many, it might seem foolish to go through the effort of trying to find the right property and then to organise a mortgage while overseas; however, returning home usually means starting a new job, which effectively resets the mortgage counter and you might find yourself waiting a further 12 months before your applicant will be considered. 12 months is a long time in the overheated rental market right now.

Over the past few years, the team here at Kinsella Estates have been working with returning buyers; putting them in touch with mortgage brokers and lenders, helping them to understand the changed market locally and walking them through the purchase process.  We understand the challenges and always work to accommodate such buyers through virtual house viewings, out-of-hours Skype calls or whatever is needed.  If you are in this position, please do talk to us.

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

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718                 

 

The long term benefits of buying the show house

June 16, 2017 #

The question of whether or not buying the show house is a good idea is an on-going debate and certainly, there are pros and cons but experienced buyers know that the long term advantages tend to out-weigh any of the short term disadvantages.

So, what are the disadvantages of buying a showhouse?

You might need to wait for a few months before closing and moving into the property.  In other markets, particularly in the US, a buyer might close the purchase and then agree to lease the property back to developer for the sales period, which could be up to two years.  This does not happen in the Irish market, in fact, most developments would only use their show house  for a few months or  a year for phase one.  It is common for developers to sell one show house and simply kit out another so two show houses in the space of a year or two years is not unusual and can work well for both the developers and the buyers.

Another perceived disadvantage is that the site adjacent to the showhouse is often used for car parking so it can be busy/noisy at times.  Again, this is a very temporary inconvenience.

As anyone who has ever bought a home in the early stages of a new development launch will know, the show house is highly sought after and generally commands a higher price.

What are the advantages of buying a showhouse?

There are multiple reasons for this but the main one is that the show house is generally finished to an excellent quality, beautifully styled and furnished with top end, luxury  brands that the developer writes off as a promotion and marketing expense so the full (trade) cost is not passed on to the new buyer.

Also, at a more basic level, all new developments up -sell ‘extras’  that a buyer can pay for if they want a higher specification throughout.  This is always demonstrated throughout the showhouse so  you can expect that it comes equipped with the highest specification available.

There is nothing standard about a showhouse.

The kitchen, including worktops and light fittings are invariably top quality.  This is also true of flooring, however, do remember that what is visually beautiful might not always be practical for families (cream carpeting comes to mind!).

In addition to the high-end finish, showhouses are a feast for interior design enthusiasts with opulent furnishings that a buyer might never be able to buy at the early stages of buying a home.  In most cases, the house is sold with everything included, right down to the bed linen, duvet covers and soft furnishings like cushions and table lamps.

Mirrors are a surprising expense for new homeowners and most showhouses use them throughout the house to enhance the light and space available.

Outside the house, the garden is usually architecturally landscaped in a low-maintenance finish (very important for busy families).

In the short-term, showhouses tend not to give new owners  the same teething problems as standard new homes as settling cracks are dealt with as they arise – the sales agent will always ensure the showhouse is kept in top condition throughout its use.  The same principle applies to snaglist issues.  These are generally dealt with as soon as they are identified.

For many buyers, the convenience is irresistible.  You can walk into your new home with a only suitcase and there’s no waiting around.

In the long term, as the glossy interior of any home fades over a few years, the showhouse quality will generally stand the test of time.

We are currently listing a former showhouse and the high-quality fit-out is still evident throughout.

1 Woodlands Drive, Gorey, County Wexford is a superb four bedroom detached home and garden, in excellent condition throughout (asking price €235,000).

 

The property report we’ve been waiting for

April 20, 2017 #

 

Every few months,  the team here at Kinsella Estates bring you the round up of property statistics and trends from the previous quarter but this week we have even bigger news.  The Central Statistics Office , or CSO, have released a special housing report, based on the latest census figures.  This is a big deal as it offers an insight into the market and key measurements  that we only get once every five years and for those who have been watching the market over the last five years, you will know that there have been lots of changes – good and bad.  This is the first such report since the market started to recover in 2012 and it definitely going to cause a bit of trouble as it contradicts new housing supply numbers released earlier this year by the Department of Housing.

The report covers total housing stock levels, new builds completed and the changing patterns of renting, for example, the trend towards older people renting rather than owning their own home. One Irish Times journalist described it as “a picture of everything we wanted to know about the Irish housing crisis but were too afraid to ask”.

Looking at the 12 months up to March  this year, we can see that the overall residential market is  up almost 11%.  Broken down, this translates into increases in the capital of just over 8% while areas – particularly in the west of the country, which was well behind the recovery we have seen here in the south east – have seen house price growth of up to 20% in the last year.  In general, the property market in Ireland  is still about 30% below peak levels last seen in 2007.

In terms of volume, the total number of  homes purchased over the last year (February 2016 to February 2017)  is 37,294.  What is interesting to note is the breakdown by buyer type; only a quarter of all buyers were first-time buyers and less than a quarter were investors or non owner-occupiers.  This means that homebuyers trading up and down, and those buying holiday homes, represent the driving force within the market.  People might be surprised to learn that the average home price in Dublin is now €398,319 and it is difficult to believe that that could have been achieved without the relaxing of the Central Bank lending rules last year and the introduction  of the controversial Help-to-Buy scheme. The average price paid for a  home nationwide is currently €245,165.  In County Wicklow, house prices are the highest outside of Dublin, with an average sale price achieved of €313,023.  Take a look at the image above (figure 3.1) for an indication of where real progress has been felt and where the recovery has effectively bypassed.

Outlook

While it is not good news for house-hunters, property prices are set to increase by double digits again this year.  In fact, Davy Stockbrokers said that 10% is a conservative estimate of future growth this year and the real figure might be much higher.  This will come as a great relief to sellers and homeowners currently caught in the negative equity trap but it raises the ugly question: Is double digit growth sustainable without significant development and can buyers truly depend on new supply coming into the market?  Unfortunately, there is no single answer to this but as the new homes specialists in counties Wicklow and Wexford, Kinsella Estates are in a good position to help would-be buyers identify new developments coming up locally over the next 18-24 months.

 

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 to arrange a viewing on our qualifying new builds.

A Return to Rural Life

February 14, 2017 #

rural-vilage

What will the Government’s rural action plan mean for sellers in South Wicklow and rural Wexford?

Last month, An Taoiseach, Enda Kenny launched the Government’s rural action plan ‘Realising our Rural Potential: The Action Plan for Rural Development’.   This comes after a comprehensive action plan for housing and a longer term housing strategy looking forward Ireland in 2040.  That’s a lot of plans!    But what do all these plans actually mean, in real terms, if you are thinking of buying or selling a home or investment in rural Ireland over the next few years?

First things first, it has to be said that this is not just a Fine Fail/Fine Gael plan, it has the support of opposition members too, which should mean that it will live beyond the lifetime of the current government – in theory.  From the input sought across a range of voluntary bodies and organisations, and the general public, there is clearly the intention to deliver real change for people living and working – or seeking work – in rural Ireland.

The ideas behind the plan are solid; there is a general recognition that there is a massive amount of potential locked away in rural areas.  I see this myself in market towns across South Wicklow and County Wexford – there are highly skilled, motivated people who are unemployed or underemployed locally.  Also, through my work, I meet people who want to return to their home towns but cannot do this until quality employment becomes available.  And it’s not just down to employment; we have to look at the homes available, or the land that needs to be made available for development.  I understand that many rural areas, particular in the West and Midlands, are plagued by ghost housing estates that no-one wants to live in, however, here in the Southeast; there is returning demand for available new homes.  Local issues for us are more likely to be the derelict homes (with or without existing septic tanks on site) that buyers would be interested in if we could make them affordable and accessible.

The rural action plan aims to integrate existing frameworks of supports and to create new ones with the objective of increasing employment opportunities and access to public services in rural areas to increase the overall quality of life for people.

The plan involves co-ordinating and implementing a huge range of initiatives – there are 276 actions proposed – all to enhance the ‘economic and social fabric’ of rural Ireland.  These initiatives focus on rural enterprise, tourism, culture, creativity and improving infrastructure and connectivity.  It still sounds a bit vague, doesn’t it?

Here are the specifics:

  • 135,000 new jobs to be created by 2020
  • Increasing Foreign Direct Investment by 40% in regional areas
  • Rejuvenation of 600 rural towns
  • Pilot scheme to encourage town and village-centre living
  • 12% targeted increase of rural tourism
  • Acceleration of high-speed broadband in rural areas
  • Protection of vital services (like GPs) in small towns
  • 3,200 new Garda members and community CCTV

What this means for owners of vacant, boarded up commercial properties is that it might just be time to start taking the boarding down.  With grants and schemes coming on-stream to support local enterprise, vacant retail and office units will be in demand once more.  The Housing Department are currently looking at rolling out a rates alleviate scheme, which would be great for commercial landlords and tenants, but we do not yet have any details.

Of interest to owners of vacant – even derelict – residential properties, renovation grants are now available to restore properties in rural communities.  This will attract home buyers, particular returning emigrants, back to their home towns.  They can apply for a cash grant, not a tax rebate, of approximately €20,000 to purchase and renovate homes in villages and small towns.  Uniquely, this scheme will be available to all home buyers, not just first-time buyers.  It is particularly aimed at old people living alone in isolated areas, it is hoped that many will accept the benefit of this incentive and refurbish town and village-centre houses.  This makes absolute sense for most people, allowing them to feel safer and more included within the everyday activities of the community.

Also, investors might be interested to learn of the Buy & Renewal Initiative, which allows local authorities and approved housing bodies to purchase buildings in need of refurbishment for the purpose of social housing.  This will come as a timely opportunity for accidental investors, who might have inherited property but have been waiting to off-load it.

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 to arrange a viewing on our qualifying new builds.

Dublin is ‘Eating’ Ireland: Wicklow & Weford Set to Benefit

February 3, 2017 #

wexford-commuters

According to the Independent newspaper reporting of the recently released ‘Ireland 2040’ document, Dublin is “eating”  the rest of the country

The report, launched by an Taoiseach and the Housing Minister last week, makes for tough reading for most of rural Ireland.  It charts the gradual decline of rural businesses, communities, towns and villages.   The simple reality is that when money leave an area, the people must surely follow.  And this is exactly what happened.  Today,  close to half of all economic activity (49%) is generated in Dublin, which is pulling the labour force away from their home counties and closer to the capital. That figure is particularly worrying when you compare it to our closest neighbours; London generates only 32% of England’s economic activity.

We have been hearing about a two-tier country since the early days of the property crash and here in the South East, we know first-hand that recovery is not happening in a fair, uniform way.  But this report forecasts where the population will be by 2040 if these trends continue,  and it’s not good news for the majority of the country.

As we can see from the above image, all parts of counties Wicklow and Wexford are likely to benefit from this over the coming years and decades as the commuter-belt widens.

Over the past 20 years, half of the population growth in the entire State has been in and around the Dublin area.  Without some big changes, this number is set to jump to 75% of population growth happening in that region by 2040.  This is dire news for many but the South East is now looking more and more attractive, and not just for home buyers and investors.  Businesses looking for a base outside of the capital, healthcare providers, education centres and other service providers are likely to come in this direction.

The work, development and investment cluster will not necessarily happen in Dublin.  In fact, the report suggests that Dublin is or will become ‘the Dublin City Region’, extending into 10 other counties from Cavan to Wexford.

This report will impact hugely on our local planning over the next few years.  As more commuters look south of Dublin and Wicklow, into Wexford, we must ensure that we have enough homes, hospital beds, school places and other necessary facilities for our growing population.  For investors looking to buy strategically, Wexford offers particular value for money with ever-increasing potential for capital value appreciation.

Finally, there is a new State plan to save our rural towns and villages underway, this plan includes grants and incentives for buyers to restore derelict homes, and we’ll talk more about this next week.

 

ireland-2040

 

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 to arrange a viewing on our qualifying new builds.

Your Guide to the Help-to-Buy Scheme

January 17, 2017 #

gleann-an-ghairdin

Budget 2017 announced the Help-to-Buy scheme, which has proven controversial within the industry, to help intending first-time buyers to put together the deposit required to purchase or self-build their new house or apartment.

The scheme works by way of an income tax and DIRT tax refund, in respect of payments made over the previous four tax years. There are three types of applicants who can apply for the Help-to-Buy scheme, namely:  retrospective applicants or buyers whose contracts are signed between 19 July 2016 and 31 December 2016; first-time buyers whose contracts are signed between 1 January 2017 and 31 December 2019; and first-time self-build applicants building between 1 January 2017 and 31 December 2019.

Eligibility:

  1. The buyer must be a first-time buyer, specifically, the buyer must not have either individually or jointly with any other person (directly or indirectly), previously purchased, or built a property.  Where more than one individual is involved in purchasing or building a new home, all of the individuals must be first-time buyers.
  2. The house or apartment must be a new-build (may be self-built)
  3. The purchase must be dated between 19 July 2016 and 31 December 2019
  4. The property must have been purchased or built as the first-time buyer’s home and not acquired for investment purposes.
  5. The property must be occupied by the first-time buyer, or at least one of the first-time buyers in the case of multiple first-time buyers (a group), for a period of five years.

How to apply:

  • Registered for myAccount (PAYE) or ROS (self-assessed)
  • PAYE taxpayers will need to complete Forms 12 (available through ROS) for the tax years selected for refund
  • Self-assessed taxpayer will need to complete Forms 11 (available through ROS) for each of the four years immediately prior to the claim. Please not that any outstanding taxes must be paid.

    In order to apply for the scheme/refund, buyers must enter the following information online:

  • Property details including address and price
  • Details of each first-time buyer and refund agreed
  • Developer/Contractor details or
  • Details of the Solicitor if self-building
  • Upload a copy of the signed
  • Balance of the deposit to be paid
  • Contract completion date
  • Mortgage details
  • For self-builders, proof of drawdown of the first mortgage tranche payment

All details must be verified by the Developer/Contractor in the case of a new build, or by the purchaser’s Solicitor in the case of a self-build, before the refund can be paid out.

  For further details on the scheme, contact the Office of the Revenue Commissioners

 

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 to arrange a viewing on our qualifying new builds.

Wicklow/Wexford Property Outlook for 2017

January 4, 2017 #

As recovery rolls out across the South East, we look at how the local market performed last year and what we can expect in 2017.

property wicklow wexford

Last year saw the appointment of our new Housing Minister, Simon Coveney and his ambitious plan: ReBuilding Ireland. The unveiling and widespread acceptance of this plan was probably the highlight of the property year – along with a relaxing of the Central Bank mortgage deposit rules –  but there were many, many lows. Without doubt, chronic lack of supply remains the critical issue and this is seen in the rising rental prices, record homelessness and a seeming stalemate within the developer community meaning that new supply remains well below demand for the third consecutive year. In particular, demand for housing in the capital increased by 10% while supply increased by a mere 1%.

Rentals prices increased nationwide by an average of 12% but Dublin and Cork saw increases of double that in key areas. An eleventh hour bill put forward by Minister Coveney – despite opposition from partners in government – aims to slow the rate of increase for the next three years to start with.  Rent caps of 4% per year introduced for the Dublin area are likely to spread to other urban areas over the next few months, north Wicklow will be first in line for that but south Wicklow and Wexford are not expected to face rental caps this year (unless universal application, as called for by Fine Fail, makes its way into legislation).

As for the first time buyers’ help-to-buy tax rebate scheme, whether this is a high point or a low point, really depends upon who you listen to.  The practical reality is that this initiative will only apply to a tiny proportion of buyers in today’s market.  If the government really wanted to impact the market, they would not have taken such a scenic route to avoid the perception of helping the developers.  The truth is that encouraging developers is exactly what is needed to get new housing units delivered as quickly as possible. This is something that the Minister has talked about and he has pledged to address the issue of building costs in the early part of 2017.  One effective way to do this might be to help bring down building costs by reducing the VAT rate, even temporarily, as we saw in the hospitality sector.  Unless building becomes commercially viable for developers and construction companies, there is no reason for them to take the risk.

But this needs to change.

From 2015 to the end of last year, the number of property purchases in Wicklow decreased from 1,402  to 1,271, mainly due to lack of supply rather than lack of demand, as evidenced by the price increases locally. A similar situation was seen in County Wexford where – despite price increases – the volume of transactions were down year-on-year  from 1,663 to 1,471.

With the population in a state of increase, employment continuing its upwards trajectory and mortgage funding in more plentiful supply than we have seen over the past eight years, demand is surging.  But without new housing, there is no way to service this demand.  Until new supply hits the market, prices will increase as competing buyers pay a ‘scarcity premium’ for any available homes in the right areas.

At the moment, for buyers, there are currently fewer than 700 available properties in County Wicklow and just shy of 1,100 available in County Wexford, that’s between six to nine months worth of supply. New homes are needed to bridge the gap between supply and demand as a matter of urgency.

Click here to view all of our new and second-hand homes in Counties Wicklow and Wexford.

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 to arrange a viewing.

Privacy Policy

Pagespeed Optimization by Lighthouse.