Housing costs in Cork exceeding price ceilings for First Home Scheme

Figures from the CSO show that accommodation costs in Cork have become increasingly out of reach, with house prices in the south-west having risen by 9.4% in the 12 months to June.

The national Residential Property Price Index showed that the national median price of a dwelling purchased during this period was €337,500, €19,500 cheaper than the median price of a home on the southside of Cork City.

The lowest median price paid for a dwelling in this time was €169,000 in Longford, while the highest was €630,000 in Dún Laoghaire-Rathdown.

These figures come as estate agents from the Society of Chartered Surveyors Ireland expect national property prices to increase by a further average of 4.5% over the next 12 months.

Level off

A report published by the society said that, while 77% of agents surveyed believe house prices are increasing, they also believe that costs will soon level off.

The report included an affordability scenario for five different locations across Ireland — Cork, Meath, Kildare, Wicklow, and Galway — which demonstrates the gap that exists between the total mortgage purchase limit available and average new house purchase prices.

The scenario for Cork showed that a couple on a combined income of €107,000 who want to buy a new three-bed semi as their first home, and have the 10% deposit, will fall short by €12,708.

The group’s vice president, Gerard O’Toole, said that the average cost of three-bed homes in Cork exceeds the price ceilings set for the First Home Scheme, making these homes ineligible for the initiative to assist first-time buyers.

Social Democrats city councillor Pádraig Rice said: “An entire generation is being locked out of home ownership.

“The housing crisis is affecting people across Cork, and it’s becoming increasingly clear that the Government has no interest in making home ownership more affordable. We need to see a significant increase in the construction of public homes that are rented or sold at prices that people can actually afford.

“In addition to these staggering house prices, we are seeing record high rents and record levels of homelessness — this has to change.”