Northside homes still unaffordable for most locals

RESIDENTIAL property inflation is falling generally in Dublin but Northside prices are rising faster than the rest of the city, according to 2016’s first major housing report.

Overall, property inflation in Dublin has fallen from nearly 25 per cent in mid-2014 to an average of just 2.7 per cent last year. But in the North County the figure is 3.1 per cent, and it’s 3.7 per cent in North City areas.

According to the Daft.ie House Price Report, average prices are now €277,135 in the North City and €259,800 in the North County.

However, that means potential buyers would have to save a deposit of almost €30,000 for an average North County home and even then current Central Bank rules would exclude anybody earning under €65,000 a year from purchasing.

Last week the Central Bank said it would review its rules on deposits and limiting mortgages to 3.5 times gross income for borrowers but warned that its lending regime was here to stay.

The report also surveyed property market participants and found that the fraction of those stating that saving for a deposit was a key reason for delaying buying a house has risen from a third in 2011 to over 75 per cent now.

Despite this, properties in Dublin are selling faster with the fraction of properties finding a buyer within two months up from from 35 per cent last autumn to 42 per cent by year-end.