Cantillon: moving house not as easy as it seems

One in four homeowners say they plan to move property in the next year, according to new research commissioned by KBC Bank.

The desire to move stems from a need for more space, or a preference to live in a better location. Half of the respondents surveyed cited the need for more space or to accommodate a growing family as the primary reason for moving, with this figure particularly high among female respondents (83 per cent).

The desire to live in a better location was deemed a priority by one in four respondents.

However, with the shortage of available housing in Dublin now acute, and prices outside Dublin outperforming the capital for the first time since the recession began, moving might be easier said than done.

Prices are also still rising. Outside of the capital, residential prices rose by 1.2 per cent in July and were up 9.6 per cent compared with July 2014.

In Dublin, where pressure on supply is strongest, values increased by 0.7 per cent and were up 9 per cent year-on-year, according to the Central Statistics Office.

Many experts believe that prices will remain on an upward curve due to demographic pressures, rising employment and lower taxes.

The KBC survey also shows the average budget that respondents have to spend on a new home is €209,300.

Six in 10 (57 per cent) plan to spend less than €200,000 on a house, with one in four (24 per cent) hoping to spend between €200,000-€300,000.

This is all very well outside the capital, but the price for a standard semi-detached house in the city is now €362,500, meaning the options of the respondents hoping to trade up are limited.