daft.ie House Price Report: Q3 2017 – An infographic by the team at daft.ie
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
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
It’s that time of the quarter again, lots of property news, results and price reports. Daft.ie and MyHome.ie are showing average property price increases of almost 10% nationwide. While the average increase is lower across County Wicklow, this is likely due to fewer transactions and those transactions are coming from an already-high value base. County Wexford is picking up speed and this has been one of the busiest quarters that we have seen in years. In general, house prices are up 40% since the bottom of the market – which is great news for sellers and home owners whose property might be in negative equity but not so good for house hunters.
Added to the usual run of house price news, KBC Bank have published their Homebuyer Sentiment survey. These type of survey is few and far between as ‘sentiment’ is more difficult to measure than percentages or euro, but the findings are usually more interesting. And this one doesn’t disappoint. Key findings include the following:
The phrase ‘pent-up demand’ has been thrown around since the confusing days of 2011/2012 and the effects of this have been felt in the market for a few years. Usually we think in terms of people who are either looking to buy or to sell; this survey includes homeowners who are trapped in unsuitable and inappropriate housing.
Interestingly, the survey estimates (based upon their random sampling) that there are approximately 70,000 would-be buyers ready to hit the market, with a total anticipated demand of 300,000over the next two years. While we have sufficient zoned land in parts of County Wexford to deal with short-term future development, the same cannot be said for most of County Wicklow.
All of this activity and these findings are reinforcing the trend for home buyers to look further from the Capital as they search for their future home. Improved road infrastructure right through Wicklow from the M50 to Gorey, just over the Wexford border, makes a 45 minute commute possible from smaller towns like Carnew, Shillelagh and Tinahely. For people looking for a coastal home, Riverchapel, just outside the seaside town of Courtown, will be an increasingly attractive location.
To view a selection of the properties currently available, visit kinsellaestates.ie
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 any viewings.
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:
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.
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.
Earlier this week someone asked me about ‘the selling season’ and I had to stop for a moment and think about it. Certainly, there used to be a traditional selling season at the start of Spring but over the past decade this has definitely fallen away.
At the moment we are still effectively in recovery mode; while it is true the marketplace has improved and we are seeing a greater number of transactions, there is still a bit of uncertainly about. Of course, reading newspaper reports about the Dublin market when you are trying to sell in rural Wicklow, Carlow or Wexford doesn’t help matters!
There are lots of myths about when is the best time to sell but the truth is usually simpler; the best time is when the seller is ready. Of course it’s great if supply and demand coincide but this is not always practical, or even likely. Transactions happen throughout the year. It’s certainly true that Spring is a popular time to sell as the days are getting longer, gardens are in bloom and people are generally around, without the interruptions of summer holidays and the distraction of Christmas. But does that mean you should wait until after Christmas to put your home or investment property on the market? Not necessarily.
Over the chaos of the past decade, savvy buyers have realised that Winter can be a great time to go house-hunting for many reasons. Firstly, there are fewer competing buyers, secondly, there is a perception that sellers are eager to sell and therefore open to potential discounts. Both of these reasons sound bad for sellers but perhaps not. The truth is, if you need to sell your property this side Christmas, it might financially make sense to price it keenly. If not, you are still assured that there will be fewer time-wasters turning up at this time of the year so while the number of would-be buyers viewing your property might be less than at other times, the quality and intention of those buyers who visit is likely to be stronger. In fact, buyers tend to find the run up to Christmas quite frustrating as sometimes even active sellers with active property listings don’t allow viewing to take place over the festive season. This is never a good idea. Once your property is on the market, it needs to be accessible to finance-ready viewers.
So, my answer to ‘the selling season’ question is simple, sell when you are ready. Trying to time the market will backfire if it’s not the right time for you and your family. But if now is the right time, talk to the team here at Kinsella Estates and we will help get you and your property ready without delay.
With less than two months to go before the end of the year, it is certainly possible to attract a buyer although getting the conveyancing through this side of Christmas might be a challenge. For many buyers and sellers at this time of the year, it is enough to reach agreement and sign Contracts for Sale so that both parties know their plans coming into the New Year. So, if you are looking to bring your home to the market this side of Christmas, it will necessary to be prepared; let your conveyancing solicitor know to take up title deeds and prepare contracts straight away; have your home and garden looking its very best and, most importantly, be ready to accommodate viewings as soon as the property is listed.
For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact myself (Michael), Alan or Eileen Kinsella at kinsellaestates.ie .
You can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718
Last month, the team here at Kinsella Estates was nominated for the Littlewoods Ireland Blog Awards 2016 and we were delighted to be shortlisted! In fact, we are the first estate agency in Ireland to ever make the shortlist so huge thanks to the awards sponsors, organsers and everyone who voted. We see this as a signal of interest in property news locally and in the market generally so we are happy to share the information.
Shortly after this, we were asked by Irish Property Developer Magazine to give a behind the scenes look at how we market properties for clients in the digital era. You can read the interview here and feel free to let us know what you think:
Estate Agents: Behind the Scenes
This month Irish Property Developer met with Wicklow and Wexford-based estate agent, Michael Kinsella. Michael continues building the legacy auctioneering practice that his father founded almost five decades ago, together with family members and a team of staff from offices in Gorey and Carnew.
kinsellaestates.ie
- Are the traditional marketing methods e. for sale boards, newspaper advertising etc still relevant when marketing property for sale in today’s market ?
I am proud to say that our family has been serving the local community for over 50 years. Through that 50 years, we have witnessed a big change in the property business in general, and even our own business model. In the early days, for sale boards were the main marketing tool available. We would produce a property brochure in the office, containing the basic information about the property etc. In those days there was no such thing as BER rating’s etc and the information in the brochure was very basic. Buyers would also see properties listed in the window of the office on the main street. We would also place adverts for auctions and houses for sale in the local newspaper, which cost a lot of money back then and took a lot of time and effort.
While there is a perception that buyers only find properties online through property portal websites like Daft.ie or MyHome.ie, the truth is that the traditional ‘For Sale’ are still very effective as a selling tool. These boards have not changed much at all over the years. They are made of corrie-boards and wood. From an agent perspective, they are cost efficient and more importantly, very effective. In addition to attracting attention to the property for sale, they also help us maintain and promote our brand locally. We still use newspaper advertising but definitely not as much as in past times. Property for sale through auction will always be featured in local, and sometimes national, newspapers. We do run regular property adverts in the local paper for certain properties, many times this translates into some editorial coverage of the property in the local newspaper property features.
- How has digital/on-line marketing impacted on the company’s marketing communications strategy ?
We list all properties for sale on Myhome.ie and Daft.ie, and both have had a huge impact on our marketing strategy. While we are based in the South East, we get a huge amount of enquiries through the internet from people living in Dublin and Kildare etc. These sites give our company great reach to a much wider target audience. We have recently launched our brand new website; a huge amount of resources went into doing this well because, as local estate agency, we understand the importance of showcasing our clients’ properties and attracting buyers from outside of our locality. I studied property marketing as part of my Auctioneering Degree and I recognize how critical it is to not only have a website, but that it must be optimized for mobile use. I believe that we have to use the technology available to us, to continually improve our business. Standing still is not an option for any property business today. The marketing focus within the company continues to grow, whereas years ago marketing was just one of many functions that was carried out.
- Does the company have a mobile marketing strategy ? If so, why
is this important?
We do have a mobile marketing strategy. In fact, we have just launched our new website, which has been optimized for mobile usage as we recognise the growing trends away from PC and desktop use towards mobile. The web design company that built the website, 4PM (www.4pm.ie ), also use the latest search engine optimization tools available to ensure that we are always placed high up the search rankings. We have a number of features that we hope to roll out over the coming months, which I don’t want to reveal now, but these features will provide us with a website that will be right up to date in terms of the latest features available. It is important also that our clients know that we have beenhere for 50 years and hope to be here for another 50 years, and the only way we will do that is by continuing to office first-class service to our clients.
- (a)Which of the following on-line/mobile marketing tools does the company use ?
Mobile optimized website Yes Search Engine Optimization (SEO) Yes E mail marketing Occasionally Property portals Yes SMS Only with existing clients & buyers QR codes No Mobile Apps Yes YouTube video platform Yes Yes; Profile & Page Social media Yes Yes
We have a website optimized for mobile devices. We also use search engine optimization. We use the property portals. We use social media and e mail marketing. Our Social Media strategy really started to pay off last year, when we launched a blog on our website. All posts are circulated across our social media platforms. This boosted our likes/followers and fans; more importantly, increased engagement gave us the opportunity to showcase our expertise across the Wicklow and Wexford markets.
In fact, Kinsella Estates were the only Estate Agency in Ireland to be shortlisted for an award in the Littlewoods Ireland Blog Awards 2016. We were delighted to be shortlisted in the ultra-competitive ‘Lifestyle’ category.
(b) Any other ?
We do try all platforms to test and measure what works best, for us that’s the blog and our Facebook page but we are always interested in learning more!
- What are the most important marketing tools from the list above ? Why ?
The property portals are the most important, as I explained earlier. They provide a single market place, where we can list properties cost effectively. We know from experience how successful these sites are at delivering leads and enquiries.
Our website is also an important marketing tool, it also attracts a lot of visitors. It is part of our marketing strategy that it is updated daily, and that content is kept fresh. Research has shown that visitors to a site get frustrated when a site is not updated etc. While this takes time, effort and discipline it has to be done.
- What has been the biggest benefit that the on-line/digital/mobile technologies have brought to marketing residential property for sale ?
The quality of the information that we can present on a property. We can have beautiful digital photography, property videos can now also be uploaded. Brochures can be down loaded from the internet also. Our focus is definitely on video footage at the moment, for both the website and for our social media content.
- How has digital/on-line marketing impacted on relationship with vendors and customers ?
We put a huge amount of resources into marketing Kinsella Estates and marketing the properties we sell. A professional website puts us on an elevated platform with our clients and customers. It showcases our expertise, which gives our company a competitive edge in a very competitive market. Using social media allows us to reach a wider target audience and provides an opportunity to communicate with our customers. Our clients and customers are more knowledgeable nowadays, and they have a higher expectation of the service they want. We strive to meet and surpass their needs, and we are always keen to embrace marketing methods, customer relationship managements tools that enable us to deliver better service to our customers. We are committed to keeping up with technology and property trends; what’s good for our clients is good for the market.
Over the last few years we got to learn a lot more about the property market than ever before. We have websites like Daft.ie listing most properties for sale around the country together with the asking prices, we have the National Property Price Register telling us achieved sales prices and, most recently, the CSO has started including cash purchases rather than just reporting on mortgaged property transactions. All of this is helpful, it improves transparency in the marketplace and that’s good for everyone, not just buyers and sellers but us agents too! The only problem is that most of the statistics are coming from the sale of town houses and apartments. It is much more difficult for rural homeowners to gauge the value of their home and particularly if their home has lands adjoining. For rural homeowners thinking of selling, definitely talk to us and we can let you know about recent sales, achieved prices locally and current ready buyers in the market.
For rural properties, often times, there are fewer interested buyers but this is not necessarily a bad thing. It can mean less time wasting as only very interested parties tend to view. Of course, this also means that it is crucial to get the listing, marketing and presentation right from the start. It’s a cliché that there is only one opportunity to make a first impression but it’s also true. A disappointed house-hunter will rarely re-visit or re-consider a property that they have already ruled out just with the promise of a clean-up or painting job.
When I or any of the team here at Kinsella Estates visit a home (before listing it for sale) we will always give feedback on the current presentation and give advice on any changes or cost-effective improvements that are likely to either increase the value of the home or increase the attractiveness of the property to buyers.
When it comes to doing this suggested work, we can always advise on what repairs or maintenance are necessary or those that will generate a return. It is not about renovating your home prior to sale, this is unlikely to ever make financial sense for homeowners.
Ways to prepare your rural home for sale is to put together area and property maps, good quality photos if you have them although we will always take professional quality images for the sales brochure, and definitely compile a list of contents included in the sale. We will always position a rural property by giving driving distances to the next largest towns, as this helps potential buyers who might be unfamiliar with the vicinity to decide if the location works for them. As part of our online listings, Kinsella Estates will accurately pinpoint your location on Google Street View (an interactive satellite map) so that interested buyers can find your property, also, they can get a sense of where it is in relation to neighbouring towns.
In my experience, including proximity to local schools, clubs and other facilities is helpful. We understand that no-one knows the property as well as the owner so we will listen to what you have to tell us and then package that information for interested viewers.
While it might sound a bit unusual, I advise sellers to put together the most recent utility bills, bin collection information and any other relevant information that a prospective buyer would need to know about the running of the property. In recent years, buyers are aware of new septic tank regulations and will certainly be looking for evidence of compliance as standard. Internally, a clutter-free environment is the most important thing. Neutral decor is generally a safe bet, buyers don’t mind an older or dated property provided they can see the potential and the best way to show people potential it to empty it as much as possible. The practice of clearing your home prior to sale is not just good for presentation, it is also a great way to get a head start on moving!
Do not underestimate the power of curb appeal; in truth, the first impression is made as the house-hunters turn into your laneway or drive. With that in mind, keep hedges trimmed, mow lawns and most importantly, remove junk from around the house and sheds. Potted plants can brighten up any yard so this is an easy way to improve the overall impression. Also, give the entrance pillars a coat of paint, remove weeds and make the drive accessible for multiple cars, if possible.
Even animal lovers will panic of they are greeted by a pack of barking dogs upon arrival; please ensure that all pets are under control during viewing times. Similarly, if you have animals in paddocks around the home, do let us know about any special precautions needed when showing people around.
Finally, because rural homes are unique, please do understand that interested buyers are likely to have lots of questions, they will want the view the property more than once and will probably take a bit longer to make a decision. Remember this is all leading to you finding the right buyer (or letting the right buyer find you and your home!).
For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact myself (Michael), Alan or Eileen Kinsella at kinsellaestates.ie .
You can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718
Property Measures Announced in the Budget
We knew in advance of Budget ’17 that housing was going to be a priority so Michael Noonan’s budget speech contained very few surprises, if any, for the sector.
In an earlier post, I detailed the Government’s Action Plan for Housing: Rebuilding Ireland. This plan sets out the housing problems to be tackled and steps that will be taken. While the issues are broken up into five categories or ‘pillars’ they all come back to one common underlying problem, that is, the chronic lack of supply across all housing sectors from social to private to rental. Developers and members of the construction industry have blamed the cost of building and budgetary measures were definitely needed to address this. Unfortunately, this is not what we got on Budget Day. Instead, we got a grant – by way of tax rebate – for first-time buyers purchasing newly built homes only.
This help-to-buy scheme for first-time buyers will give a rebate of income tax (already paid) of 5 per cent of the purchase value of a newly-built home, up to a value of €400,000. That translates to a maximum rebate of €20,000 in cash. Properties costing from €400,000 to €600,000 will qualify for the €20,000 rebate, but the scheme will not apply to homes over €600,000 in value. This is a temporary measure only, backdating to July 19th last and will run until the end of 2019. In practical terms, buyers of a new house costing €300,000 will qualify for a rebate worth €15,000, however, they will still need their €23,000 deposit (under the Central Bank rules) and they must have a combined income of €75,000.
While the rebate is designed to offset the cost of higher deposits required from first-time buyers, and in turn boost demand, it has been perceived by members of the sector as a grant to the developer. Irrespective of the designed purpose, in real terms, this is the least effective way to stimulate supply and is likely to simply increase prices for first-time buyers already struggling to afford their first home.
While the first-time buyer initiative has been deeply criticised across the industry, at least there was some attempt to address their concerns. Those stuck in rental situations were not so lucky. At best, the help-to-buy scheme will create get a small portion on renters out of this market and into their own homes, and this should free up some rented accommodation.
Other Property Measures
For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact myself (Michael), Alan or Eileen Kinsella at kinsellaestates.ie or email me directly on michael@kinsellaestates.ie and telephone: +353 53 94 21718
The Minister for Housing, Planning, Community and Local Government, Mr. Simon Coveney,T.D., today (11 October 2016) welcomed significant additional funding allocated for 2017 to underpin Rebuilding Ireland the Government’s Action Plan for Housing and Homelessness. In Budget 2017, the Government is allocating €1.2 billion to housing programmes, a 50% increase over 2016. Thi
s investment will see the housing needs of over 21,000 households being met in 2017. In addition, local authorities will fund a range of housing services to the value of €92 million from surplus Local Property Tax receipts, bringing the total housing provision in 2017 to almost €1.3 billion.
Speaking after Budget 2017 was announced, Minister Coveney said:
“What I am announcing today represents a transformational budget for housing in Ireland. I said at the launch of Rebuilding Ireland in July that meeting the housing challenge is the key priority for this Government. The package of measures I am announcing with Cabinet colleagues demonstrates the extent of that commitment. The investment provided by the Exchequer and by local authorities will allow us to meet the housing needs of 21,050 families in 2017. As part of this, I am providing an increase of €28m in funding for homeless services, underscoring the particular priority I attach to this issue, including the provision of emergency supports for rough sleepers and ending reliance on the use of hotels for homeless families by mid-2017.
The Budget also contains a comprehensive package of supports for the wider housing market in terms of a significant tax rebate for first time buyers to stimulate the supply of new homes; extension of mortgage interest relief for existing homeowners; and changes to Capital Acquisitions tax The rented sector is a key focus under Rebuilding Ireland and in this Budget we have introduced a number of important supply incentives including improvement in mortgage interest relief for landlords, increase in the ceiling for the rent-a-room scheme, extension of the Living City initiative to rental properties and supports for new student accommodation. This is in advance of the delivery of a comprehensive strategy for the rental sector which I will publish before the end of the year.
Total funding for my Department in 2017 is €1.78 billion compared to €1.38 billion this year. This includes €702m in capital funding – an increase of 48% on 2016 and €1,075m in current funding which is an increase of 18% on this year. Overall, the increase of €394m or 28% on 2016.The bulk of the increase is going to housing which is the Government’s number one priority issue. An additional €2m is also being provided in 2017 for the RAPID programme for disadvantaged areas and a new Community Facilities Fund is being included, with an initial €2m being provided in 2017.
The proposed Department Vote 2017 is €1.777 billion (€702m Capital and €1,075m Current) an increase of nearly 30% since 2016 (€1.383 billion).”
Detailed breakdown of each sector
Housing Delivery
Capital
A total capital provision of €732m (Exchequer provision up 51% on 2016) has been allocated in 2017 and will support the delivery of 4,450 units through the Local Authority and AHB construction and acquisitions programme. This also includes Rapid Builds, units to be delivered through Part V mechanisms, returning vacant units to productive use and delivery of new units under the National Regeneration Programme.
Current
A total provision of €581 million has been allocated in 2017 and will support the delivery of 16,600 units through:
Homelessness
Increasing Supply
First Time Buyers – Help-to-Buy, Mortgage Interest Relief, CAT
Local Infrastructure Housing Activation Fund
Planning
Bringing vacant properties back into use
Housing Agency Rotating Fund
Repair & Leasing Initiative
Buy & Renew Initiative
Living City Initiative
Local authority voids
Supporting the Rented Sector
Student Accommodation
Home Renovation Incentive
Community
Water Services
Local Government
ENDS