One in five rule out home ownership, study shows

Almost 20 per cent of Irish adults who do not own their own homes believe it is beyond them because of high rents and tighter Central Bank mortgage lending rules, as well as other supply factors, a new survey has revealed.

The survey of more than 3,000 people from online brokers 123.ie also highlights the pressure many living in rented accommodation are under and says that 14 per cent of them have missed a rental payment over the last year because they didn’t have the money.

A separate survey from property website daft.ie shows rents across the State rising by an average of 2 per cent in the first quarter of the year with the increase taking monthly rent in March to more than €1,000 – the highest average since the peak of the boom.

The 123.ie survey of more than 3,000 landlords, homeowners, people renting and those living with their parents covered a range of issues including rental properties, mortgages, renovations and water charges.

“Affordability is a massive issue for younger people,” said 123.ie head of marketing Padraig O’Neill. “Almost one in five of those renting or living at home who feel that they’ll never be able to buy say it’s because property prices are too high. But the issue is more complex than that . . . ”

According to the research, the main barriers include worries about being unable to service a mortgage and difficulties getting a deposit.

The survey also looked at homeowners. Two-thirds of people in this group say they plan to stay in their current home in the long term, with more than a quarter saying they would upgrade or extend their home rather than move.

The average spend on such projects is €23,000 with the kitchen being the most popular room in the house for an upgrade.

Extending living areas is more of a priority than adding bedrooms, as the average household size falls.

“Overall, around 63 per cent of survey respondents see themselves living in their current residence for the rest of their lives,” said O’Neill.

“For some, the reason might be related to being in negative equity but for most, they are happy with their home and surrounding area.”