The ‘squeeze is getting squeezier’ for house buyers
The Central Bank’s lending rules will be crucial to avoiding a repeat of old mistakes
“The younger generation always seem to lose in this housing lottery.” Photograph: Daniel Leal-Olivas/PA Wire
New year, same old story. The latest predictions are for the housing squeeze to intensify during 2018, with prices rising further, well ahead of likely increases in income. You would think that affordability constraints might be starting to kick in more significantly – particularly in Dublin – and slowing price growth. But, so far, prices just keep heading up.
Davy stockbrokers economist Conall Mac Coille, in an analysis based on figures from property website myhome.ie, predicts house price growth of 8 per cent this year. Most other forecasters expect something similar. Sherry FitzGerald estate agents peg the likely 2018 increase at 6-8 per cent.