First-time buyers forced out of Dublin ‘putting strain on Wicklow services’
The number of first-time buyers in Dublin are being forced out of the city and into Wicklow will negatively impact on services in the county, a new report has found.
Although house prices in north Wicklow have long been in line with prices in Dublin, an increasing number of house hunters are being forced to live further from their place of work due to continued price hikes in the Capital, the Banking and Payments Federation Ireland (BPFI) has warned.
As a result, this is putting pressure on costs in other parts of the county as prospective buyers are forced out of the Dublin market.
Ultimately, this will put strain on services such as schools, roads and health services in the county as well as affecting the wider economy in general.
According to the Central Statistics Office (CSO), the typical or median price paid for a home in Dublin in the 12 months to September was €368,000 compared to a State median of €265,000.
In Wicklow the median price is €330,000, just €38,000 off the Dublin price.
The banking lobby group highlighted a significant increase in house sales in Dublin’s commuter belt counties – Louth, Meath, Kildare and Wicklow.
According to loan data, 41% of first-time buyer mortgages are moving county, reflecting what it described “as an increasing drift of first-time buyers moving to the Dublin commuter belt”.
“Price developments are seriously limiting potential buyers’ preference, particularly first-time buyers, to live in areas closer to where they work or currently live, as average income levels of this cohort of potential customers are affected by the macroprudential framework in place for mortgage lending taking into account average price levels, particularly in Dublin,” BPFI’s chief economist Ali Ugur said.
“Regional mobility perhaps shows the flexibility of the workforce in the Irish economy. However, it should be noted that the pattern of more residential housing activity taking place in the Dublin commuter belt is likely to put pressure on the infrastructural needs in these areas, which is likely to have a negative impact on the overall competitiveness of the Irish economy,” Mr Ugur said.